Revealed: Young adults are saving more than the older generation

74% of young adults are managing to save. Picture: CLAUDIODIVIZIA

74% of young adults are managing to save. Picture: CLAUDIODIVIZIA - Credit: Getty Images/iStockphoto

A new survey has shown that 18-24 year olds are saving more than any other generation.

According to the survey, which was carried out by specialist bank Aldermore, young adults are managing to save 10% of their annual income – an average of £1,160 nationally.

While those in the East of England save £1,506 annually.

The results also revealed that people with lower incomes are saving the largest proportion – those earning up to £10,000 a year are saving 15% on average.

The survey showed that almost a third of the population currently don’t save at all.

Simon Healy, managing director at Aldermore, said the earlier people start to save the better.

He added: “Although almost a third of the population (31%) currently do not save anything at all, our new analysis shows that for the majority, the savings message is resonating, despite the low rate environment over recent years.

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“It is encouraging to see that people on low incomes and the younger generation are actually some of the best at saving, the earlier people start savings the quicker and better chance they have of reaching their savings goals in later life.

“However, it’s clear that this can be hard with many people feeling that they are not saving enough particularly at a time when wages are not increasing in line with the cost of living. We hope that we can encourage people to make even a small change in their saving and spending habits, which can go some way to provide protection for the future.”

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