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18-30 year olds save more than any other age group

Joanna Faith
Written By:
Joanna Faith

Young savers are giving up luxuries to hit their savings goals, and setting aside more money than any other age group, according to research from HSBC.

While the disposable income of 18-30 year olds has been hit the hardest since the economic downturn – leaving this age group with less than £400 a month to spend on average – they are saving the highest proportion of their income (24%) compared to other age groups.

The survey found that 18-30 year olds are more willing than any other age group to give up nights out to reach their savings goal, and would give these up over their gym membership or online subscription services like Netflix or Spotify.

The top reason for young savers to save was a house deposit (35%), followed by a holiday (21%), with only 7% saying their top priority was to save for a wedding. For those over the age of 30, a holiday was their top savings priority (29% of savers aged 31+), followed by home improvements (20%).

Between 2008 and 2012 average disposable income for 18-30s fell 40%, from £569 to £343. It recovered slightly to £380 in 2014 as average wages for younger people started to improve. This compares to a fall of just 2% for those aged 30-49 in the same period, from £1,490 to £1,466. Disposable income for 50-64 year olds increased by 6%, and by 13% for those aged 65 or over.

Debbie Thomas, head of savings at HSBC UK, said: “It’s great to see that young people are saving such a large proportion of their income. Getting into a savings’ habit early pays dividends later on in life, whether it’s for a house deposit, a car or even retirement. Customers should look at the different options that can help them save; whether it’s a regular saver to keep them on track, an ISA, or saving with someone else, even the smallest amounts saved now can build a healthy nest egg.”