New research from Nationwide Building Society has issued a stark financial warning, revealing a significant gap between the UK's savings ambitions and reality. While the average household hopes to put away £7,535 next year, one in ten people admit they do not plan to save a single penny.
The Savings Ambition Gap
The study, conducted by the mutual lender, highlights a nation with mixed financial intentions for 2026. A third of adults (33%) plan to save more than they did last year, and a further 43% expect to save roughly the same amount. This leaves a concerning minority with no savings plan at all.
Younger adults, particularly those aged 25 to 34, are the most ambitious. This group is aiming to save an average of £14,912 – nearly double the national average. However, the research suggests a dose of realism may be needed, as more than a third (35%) of this demographic actually expect to save less than £5,000.
Generational Divides and Stress
The data uncovers a clear generational split in savings targets. Almost half (49%) of Millennials are planning to save five-figure sums of £10,000 or more in the coming year. Despite these high aspirations, the process of saving is a source of anxiety for many, with 69% of people reporting they feel stressed when trying to build their nest egg.
Looking at broader goals, four in ten Brits (40%) intend to simply maintain their existing savings levels in 2026. A more modest 14% are targeting savings of up to £2,000.
The Cost of Inaction: Missing Interest
Nationwide's report also sheds light on a costly missed opportunity for many savers. In the last year, people earned an average of £436 in interest on their savings, likely helped by a period of higher interest rates. However, just over one in eight (12.5%) earned no interest whatsoever.
The primary reason for this shortfall is where people keep their money. Richard Stocker, Head of Savings at Nationwide, explained that too many are leaving cash languishing in current accounts, which typically offer little or no return. "However, too many are missing out on interest by leaving money in current accounts," he stated.
Expert Advice for Savers
Speaking ahead of the Christmas period, Mr. Stocker offered clear guidance for those looking to improve their financial health in the new year. "Our advice is simple: start early and save regularly to build a habit," he said in a customer update.
He also pointed savers towards practical tools to help, such as budget calculators available on banking apps. Furthermore, he highlighted incentives like Nationwide's £175 bank account switching offer as a potential catalyst. "Which is a great way to kick start a savings habit," he added.
The findings serve as a timely reminder for UK households to review where their money is held and to set realistic, regular savings targets to make their financial goals for 2026 a reality.
