Make 2017 the year you save

Category: Savings
Author: Leanne Macardle
Date: 29/12/2016

Many of us could do with getting into the savings habit, and encouragingly, it looks as though a lot could already be setting savings goals for the year ahead. Will 2017 be the year you save?

A decent start

In even better news, research from Charter Savings Bank shows that many will already be starting their 2017 savings goals from a decent base, and it's the millennial generation that seems to be particularly savings savvy. The figures show that those aged 18-34 out-saved all other generations over the last year, stashing away an average of £3,701 in 2016, over £450 more than their baby boomer and Generation X counterparts (who saved £3,226 and £3,238 respectively).

Indeed, 78% of millennials surveyed were able to save some money over the last 12 months, with 37% making regular monthly deposits. This is compared with 69% of Generation X and 70% of baby boomers, showing that despite a challenging year, many were still able to squirrel away some savings. For example, just 4% of millennials said that low savings rates have hindered them and just 6% said that the Brexit vote prevented them from saving, so it's clear many remain focused on their finances.

Money motivation

The research found that having clear goals in mind and simply getting into the savings habit can be enough to boost cash reserves, with 14% of millennials believing that being committed to regular saving helped boost their pot. Not only that, but 58% already have a savings goal in mind for 2017, with 18% planning to put money away for a new house, 13% saving for a holiday and 11% needing new household items.

These findings are mirrored in additional research from Masthaven Bank, which shows that 78% of respondents plan to save next year, with 34% of that group planning to save more than in 2016 – and they're expecting to squirrel away an average of £4,000 in the next 12 months. Similarly, it's the younger age group that's got the greatest savings expectations, with 46% of those aged 18-34 planning to save more in the year ahead.

Financial resolutions

Again, having distinct goals in mind appears to be key, with holidays topping the list of goals (26%), followed by home improvements (11%) and house deposits (10%). Other drivers aren't always so specific, with saving for financial security (45%) and for a rainy day (23%) also being key motivators for many, but what the research highlights overall is that money matters remain firmly at the top of the agenda.

"For several years now the conventional wisdom has been that around a third of people in the UK don't save," said Jon Hall, managing director of Masthaven. "This research shows a more positive outlook, and one we are keen to ensure happens."

Paul Whitlock, director of Savings at Charter Savings Bank, added: "Millennials have come up trumps when it comes to saving money in 2016, beating the older generations to the title of top savings generation. However, what is most encouraging is that the level of people putting money away is so high across the board.

"Our attention now firmly turns to 2017, and a year in which savers could enjoy some well-deserved relief as the Bank of England keeps a close eye on interest rates. For now, people across the UK should use the New Year to put at least one savings resolution in place and start 2017 with their best foot forward."

What next?

Find the best savings accounts to kick-start your savings habit for the year ahead