One in five UK adults say they’ll be saving less in 2024

• Majority of those that will be saving less blame the increased cost of consumer staples and rising energy prices
• Young adults aged 34 and under are four times more likely to be saving more in 2024, compared to over 55s

One in five (19%) adults in the UK say they’ll be saving less money in 2024, new independent research* carried out on behalf of Handelsbanken Wealth & Asset Management shows.

For those planning to save less next year, almost two thirds (64%) said this was down to increased energy prices while the same proportion (63%) blamed the increased costs of consumer staples, such as food and other household goods. Over half (57%) agreed that high inflation was a factor too, according to the study.

This is further supported by recent data from the Office for National Statistics (ONS)**, which found that around 4 in 10 (41%) of energy bill payers are struggling to afford payments, and revealed that just under half (48%) of adults in Great Britain are using less fuel, such as gas or electricity, in their homes because of the rising cost of living.  

While 30% of British adults say their intentions are to save more next year, many are doing so to prepare for tough times in the future. More than a quarter (28%) believe they’ll need a savings ‘safety net’ due to the rising cost of living, for instance – with more women planning for this than men (32% vs. 24%). This is unsurprising, with ONS data revealing that around three in 10 (30%) were already having to dip into existing savings to meet rising costs.

The Handelsbanken data shows it is younger people who are most likely to be saving next year, with those aged 18-34 four times more likely (57%) to in 2024, compared with those over 55, at just 14%. Of those that are planning to save more, around one in five said this is because they’ll be starting a job which pays more.

PK Patel, Head of Wealth Management at Handelsbanken Wealth & Asset Management said: “With many feeling the strain after months of increased prices and increased outgoings, it’s no surprise that people are less than optimistic when it comes to augmenting their savings or maintaining their existing pots.

“But while dipping into your nest egg or saving less than usual is sometimes unavoidable, it can have lasting consequences on your long-term financial planning goals.

“It is therefore more important than ever to seek financial advice to ensure you’re putting the best plan for yourself in place, and keeping an eye on key upcoming personal finance dates, such as the ISA deadline on the 5^th April.

“This is the final date you must pay into your ISA to take advantage of that financial year’s tax benefits, for instance, and a significant event in the savings calendar.”