How much savings should I have?

There’s no one answer to the question, “how much should I have in savings?”. What really matters is what you’re saving for. For example, an emergency fund should be enough to cover a few months of living expenses, while saving for retirement calls for a much larger pot. On this page, we’ll look at how much you might put away for different savings goals.

There is no exact amount everyone should have in savings. It ultimately comes down to your personal situation. So before plucking a figure out of thin air, it can help to ask yourself a few questions:

• How much money have you already put aside?
• What have you built up in your retirement pot?
• Do you have enough money stashed away to tide you over in the event of an emergency?
• What are your financial goals for the next few years, and further in the future?

Noting down your situation and plans can give you an idea of where you stand and an initial answer to “how much should you have in savings?”.

It’s worth pointing out that if you have any high-interest debt (such as credit card debt), it is generally recommended that you pay off that debt before starting to think about how much to save. That’s because the interest charged will typically outweigh any interest you earn on your savings. Find out what else to consider in our guide to paying off debt or saving money.

From unexpectedly losing your job to a malfunctioning boiler, life is full of surprises, and having a financial cushion can ease the burden of those unplanned-for expenses. So, how much savings should you have in an emergency fund? Any amount you are comfortably able to save is a step in the right direction. Even a small sum could help you avoid taking on expensive debt to cover the costs.

Most experts agree that you should aim to save three to six months’ worth of essential expenses in an account that’s easy to access. Of course, the more you can save, the better. If you’re retired, you might consider saving a year’s worth or more to account for the lower income. Essential expenses include fixed monthly costs like rent, mortgage payments, gas and electricity bills, and food shopping.

To calculate the ideal amount for you to save for emergencies, start by listing your essential monthly living costs, for example:

• Rent or mortgage: £800
• Utilities (electricity, water, gas): £150
• Food shopping: £200
• Transport (fuel/public transport): £100
• Insurance: £100
• Phone/internet: £50

Total monthly expenses = £1,400

Based on this, you’d aim for an emergency fund of £4,200 to £8,400 (between three and six times your monthly expenses), depending on how much security you want.

To build your fund, you might use an easy access savings account that won’t restrict the number of withdrawals you can make. A savings account also offers the added benefit of earning interest on your emergency fund.

This will depend on your personal circumstances and lifestyle goals. Everyone has different ideas about what’s enough to live on in later years. So, how much should you have in savings for retirement?

A useful starting point is to check how much you’ve already saved in your pension pot. From there, you can see what kind of income that amount could provide in retirement. This will give you an idea of whether you might need to increase your monthly contributions. It can also help you decide whether early retirement is a realistic option. There are several pension calculators available online that can help with this process.

Once you’ve put aside some emergency savings, you might want to focus on saving for your next big financial goal. Whether you’re looking to save for a car, a wedding, or a nice holiday, the amount you’ll need to save will depend on your personal budget and priorities.

When saving for a house deposit, you could start by considering how much you can afford for monthly mortgage payments, as this will help you determine your price range for a home and, in turn, the deposit required. Deposits are usually 10% of the house price, so if you have your sights set on a £300,000 home, you’d need to save at least £30,000 for the deposit.

You can also take advantage of government-backed schemes such as the Lifetime ISA (LISA), which gives you a 25% bonus on your savings each year, up to a maximum of £1,000 annually, to help you buy your first home or save for later life. Learn more about saving for a mortgage.

For some people, having a set amount of savings to work towards by a certain age can be motivating. This is particularly true of retirement, where people are often unsure of the right amount to save. It can also be helpful to compare your savings with the average savings by age in the UK. While everyone’s situation is unique, experts recommend certain savings benchmarks for each age group.

The following table shows how much savings you should have based on an average UK income, which was £37,430 in 2024*.

If you’re looking at these figures and feeling behind for your age group, keep in mind it’s never too late to start saving. Remember, this is just a guide, and everyone’s needs are different. If you have children or other dependents, it’s perfectly normal not to be able to save as much as others your age.

Having a savings target can help you focus and make positive changes to your habits. But try not to get too hung up on reaching a specific amount by a set age, as it can be easy to put unnecessary pressure on yourself. Instead of asking yourself, “how much should I have saved by 30?”, you might simply think, “how much can I save right now?”, and then build a budget around that. Every little bit counts.

Whatever the amount you decide to start saving towards, in general, the earlier you can start saving, the better. Savings accounts often pay compound interest, meaning you earn interest on both your original deposit and the interest that builds up over time. If you’re able to leave your savings untouched for a longer period of time, your savings will likely grow at a faster rate.

A popular rule of thumb is the 50/30/20 rule, where you put aside 20% of your post-tax income each month. This is how it looks:

• 50% of your take-home pay goes toward essential expenses like rent, bills, and groceries.
• 30% is for non-essentials such as shopping, leisure activities, and takeaways.
• 20% is what you save.

This is not always realistic for everyone, and some people find that necessary expenses take up most of their income. You can always adjust the ratios to fit your situation, or find other sources of income. Raisin UK has a wide range of helpful guides to saving.

It’s one thing to have an answer to, “how much savings should I have?”, but how do you actually get there? Because saving money is an important skill for life, regularly adding small amounts to your savings is often more effective than putting in a lump sum and forgetting about it.

Wherever you are in your savings journey, you might find some of the following ideas useful:

• Create a budget by listing what you’ve spent in the past three months or so and finding areas where you can cut back in the following months. Instead of wondering where all your money went, you are more in control and have a guide to direct your future spending and saving.
• Automating your savings can help you get into the habit of putting away a certain amount of money. If you’ve created a budget and know how much you can realistically put aside, you could then ask your bank to set up a standing order or Direct Debit to transfer that amount to savings each month. Alternatively, you might like to explore money-saving apps that are designed to make money transfers quick and easy, even when you’re on the go.
• Compare interest rates on savings accounts to make sure you’re getting the most out of your money. With Raisin UK, you can access a range of high-yield savings accounts that cater to different needs, helping your money work harder for you.
• If you’re not already contributing to a workplace pension, check with your employer to talk through your options.
• Consider whether you should save or invest your cash. If you can lock away your money for a few years, investing could offer higher returns than a standard savings account. But investing carries more risk, and there’s always a chance you lose some or all of the money you initially put in.

From easy access savings accounts with flexible access to fixed rate bonds, where you lock your cash away for a set term in return for a competitive interest rate, you’re sure to find the right savings account for you at Raisin UK. It couldn’t be easier to get started. Simply register for a Raisin UK Account, log in, and apply today. It’s completely free.

*https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2024