Generation Save: Young People Lead the Savings Charge in 2025

Young people are at the forefront of the savings movement as nearly half (46%) of those under 35 plan to save more in 2025, more than double (18%) of those aged 55+, according to annual research^[1] by Marcus by Goldman Sachs.

The research, now in its seventh year, surveys 2,000 nationally representative UK adults and reveals that a third of people (34%) plan on saving more in 2025 and 31% intend on spending less.

Shift in spending priorities

As many UK adults focus on saving, the research suggests that people may be being more discerning and intentional with their spending priorities. Discretionary spending such as on alcohol and nights out have seen the biggest budget cuts, with spend on alcohol dropping by 20% on average, from £348 in 2023, to £279 in 2024.

On the other hand, it seems people are not prepared to reduce spend on more meaningful purchases and experiences in a bid to save more. In fact, spending on holidays has increased by 6% since 2022, rising from £864 to £917 and attending sporting events has increased 25% since 2022 rising from £247 to £309.

The research also suggests that spending regrets are common. A third (34%) of Brits regret a purchase decision made last year, increasing to over half (58%) of those aged 18-34. The biggest regret purchases in 2024 include clothes (£283), items for their home they didn’t need (£147) and takeaways or delivery food (£205).

Taking control of your savings in 2025

For many, financial worry is a concern, with 43% stating that they worry about money a lot. This is most felt among young people, with over half (51%) expressing financial worries. Over a third (33%) of people feel they are financially worse off than they were at the same time last year, while a fifth (20%) believe they are better off.

In a bid to improve their financial situation in 2025, many consumers are planning on reducing spend in some areas. In line with their spending regrets,10.7 million Brits (20%) plan to eat fewer takeaways, while other changes include eating out less (22%), buying fewer clothes (21%) and buying less coffee (10%).

The latest government Budget has also been a catalyst for many people to adjust their saving priorities for 2025; 36% have changed their saving habits in response. The data indicates that 13% have prioritised savings in Cash ISAs, 12% in easy access accounts, and 10% in fixed rate savers.

To help people maximise their savings and select the best savings account for their individual needs, Rob Basinger, Head of Product and Marketing at Marcus by Goldman Sachs, shares his top tips:

Finding the Right Savings Account:

Having a range of different accounts, each with its own purpose, can help UK consumers make the most of their money. Here are different types of savings accounts to consider:

1. Easy access accounts: These accounts are ideal if you think there’s a chance you might need to withdraw unlimited money without notice, for example Marcus by Goldman Sachs’ Online Savings Account. The interest rate is variable, which means it can change from time to time.
2. Regular savings accounts: If you like to add cash to your savings on a regular basis, these accounts may require you to make a deposit every month. Interest rates can be fixed or variable.
3. Fixed rate savings accounts: Fixed rate savings accounts, such as the 1 Year Fixed Rate Saver, offered by Marcus by Goldman Sachs, gives the security of locking in an interest rate for a set length of time. You’ll know exactly how much interest you’ll earn over that period, but usually access to money is restricted.
4. Cash ISAs: Cash ISAs such as the Marcus by Goldman Sachs Cash ISA offer tax-free interest on your savings, with a limit on how much you can deposit each tax year. While there’s a limit, Cash ISAs can be a good way to grow a tax-free savings pot.

Things to Look Out For When Opening a Savings Account:

1. Compare AER to AER and Gross to Gross: Ensure you’re comparing like-for-like interest rates to get an accurate picture of potential earnings on your savings.
2. Watch out for any fees and charges: Be aware of any additional costs that could reduce or impact your savings.
3. Check if there are any restrictions on withdrawals: Understand any limitations on accessing your money to avoid unexpected issues when withdrawing your money.
4. Make sure you know the maximum amount you can save: Be informed about the maximum deposit limits to plan your savings effectively.

Rob continues:Rob continues: “It’s positive to see that UK consumers are re-assessing how they can manage their money better in 2025. Our research shows that there’s been a shift in spending habits, with people planning to save more this year.With various savings accounts available, such as cash ISAs and easy access accounts, its essential consumers choose the account that best fits their needs and to consider factors like any fees, charges, and withdrawal restrictions before deciding.”

For tips and considerations on how to reach your savings goal visit Marcus by Goldman Sachs’ savings page.