• Two in five are saving for unexpected shocks
• Savings are about security first, not long-term wealth
• £2,000 cuts the odds of falling behind on bills by almost 60%
• Six in ten adults could save more if they had money left after essentials

Britain is not saving to get ahead, it is saving to avoid falling behind.

New research from the University of Bristol’s Personal Finance Research Centre, reveals Britain’s savings habits reflect ongoing cost pressures, with people now putting money aside to prepare for life’s financial shocks rather than future aspirations.

Rather than saving for dream holidays or retirement, broken boilers, vet bills and surprise household expenses top the list of savings priorities, with two-in-five savers (41%) putting money aside for unexpected or irregular costs.

By contrast, saving for long-term wealth is one of the least common motivations. Just one in seven (14%) save as an investment, and only 5% say investing is their main reason for saving.

The findings suggest savings have become less about getting ahead and more about staying financially secure when life doesn’t go to plan. Among current savers, almost six-in-ten (59%) say having savings gives them a sense of security and protection against emergencies, far outweighing any other benefit that having a savings pot brings.

While financial resilience is the biggest reason people save, the research found that savings can also support wider ambitions. Saving for treats or gifts reflects the importance of family and relationships, while saving for bigger goals, such as a dream holiday or buying a home, reflects people's aspirations and hopes for the future.

Why so many people struggle to save

The research also highlights why so many households struggle to build that financial cushion. Six in ten adults (60%) say they could save more if they simply had money left after paying for essentials, making day-to-day household costs the biggest barrier to saving.

Younger adults, students and young families face additional obstacles, including needing more support to make a savings plans and stick to it.

Why even modest savings matter

The research completes a three-year programme by the University of Bristol exploring the role savings play in people’s lives. Together, the studies tell a consistent story.

The first report - Understanding the role of savings in promoting positive wellbeing found that developing a regular savings habit improves wellbeing, helping people feel more optimistic about the future, sleep better and enjoy greater life satisfaction.

The second  - Understanding the role of savings in building longer-term financial security - showed that households with at least £2,000 in savings were almost 60% less likely to later fall behind on household bills, with even much lower levels of savings reducing the risk of financial hardship. It also highlighted how having basic savings accounts can lay the foundations towards saving for bigger items or lifetime goals, as well as other more sophisticated financial products, such as ISAs, pensions or investments.

This latest report – Understanding the reasons for and barriers to saving - explains why people save. For most they’re not about building future wealth or financial wellbeing, they are about building a financial cushion that can be used, rebuilt and be relied upon when life doesn’t go to plan.

The findings are published one month before this year’s UK Savings Week (21-27 September), which encourages people across the UK to build stronger savings habits and improve their financial resilience.

Andrew Gall,  Head of Savings, Consumer & Insight at the Building Societies Association, commented:

“We used to think that savings were about getting ahead, achieving dreams and building wealth. But for many families it isn’t about getting richer, it’s about making sure an unexpected car repair or broken washing machine doesn’t become a financial emergency.

“Over the past three years we have learned that savings aren’t just about money. They help people sleep better, feel more optimistic about the future and make them less likely to get into financial difficulty when life throws an unexpected bill their way.

“The challenge isn’t that people don’t understand the value of saving. It is that too many simply don’t have enough money left at the end of the month to build that financial cushion. Helping more people build even a modest savings buffer could be one of the most effective ways to improve the UK’s financial resilience. That’s why UK Savings Week will focus on helping people build savings habits that work for them, whatever they can afford.”

Tina Hughes, director of savings at Yorkshire Building Society said:

"This research confirms something we hear from our members every day – savings aren't just about future ambitions, they're about creating a safety net for the here and now.

“We're proud to have supported this trilogy of research, which shows the important role savings play in building confidence, resilience and financial wellbeing. At a time when many households are facing ongoing financial pressures, even a modest savings buffer can make a meaningful difference."

Tom Riley, Nationwide’s Group Director of Retail Products, said: 

“For many people, saving isn’t really about a big goal – it’s about having a bit of a buffer for the unexpected. When the boiler packs up, the car needs repairs or a bill arrives out of the blue, having some money set aside can make a real difference.

“We know it can be difficult to save when day-to-day costs are high, which is why we’re committed to helping people get the most from the money they can afford to put away. It’s not about putting away large amounts every month. Even small savings can provide valuable peace of mind, helping people feel more confident that they’ve got something to fall back on when life doesn’t go quite as planned.”

-ENDS-

About the Research

The survey analysis was conducted by independent researchers at the Personal Finance Research Centre at the University of Bristol. The research was commissioned by the Building Societies Association to support UK Savings Week, and was sponsored by Nationwide Building Society and Yorkshire Building Society

The survey questionnaire was designed by the Building Societies Association to capture people's saving attitudes and behaviours across three areas: reasons for saving, the roles savings fulfilled, and the potential barriers which prevent people from saving or saving more. Opinium’s UK Consumer Omnibus collected data from a UK sample of 4,000 adults (18+). Quotas ensured coverage across all four nations, and data were weighted to be nationally representative. See the report for more details.

About UK Savings Week – 21-27 September 2026

UK Savings Week is a Building Societies Association led campaign with a clear social purpose of getting people engaged in saving, whether that is people who don’t have any savings to fall back on in an emergency, or people who have some savings but which could be working harder for them.

It’s a sad fact that 1 in 10 people in the UK have no savings[1]. There is also more than £300 billion in accounts that do not pay any interest [2]. UK Savings Week has two key ambitions:

• To create 2 million new regular savers by 2030
• To move £50 billion from 0% accounts by 2030

About Building Societies Association

The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £670 billion and together with their subsidiaries, hold residential mortgages of £499.1 billion, 29% of the total outstanding in the UK. They also hold £502.2 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 46% of all cash ISA balances.  

With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff.  In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.

Press Contacts
Tanya Jackson, Building Societies Association 
Katie Wise, Building Societies Association
Email – pressoffice@bsa.org.uk


[1] FCA
[2] Bank of England