25% of youngsters have £500 or less stashed away

A quarter of young Brits have £500 or less in their savings, according to research.

A poll of 2,000 adults aged 35 and under found a quarter don’t have any funds set aside for emergencies, with 29 per cent prioritising saving for other things instead.

Alistair and Jonny Brownlee holding a sign that says "£5k" while sitting on a couch. — Alistair and Jonny Brownlee launch NatWest’s ‘Couch to Cash: the £5K Challenge’Credit: Joe Pepler/PinPep

Alistair and Jonny Brownlee holding gold medals, promoting a savings initiative. — Both Alistair and Jonny won Olympic gold representing Team GBCredit: Joe Pepler/PinPep

While 15 per cent admit to embracing a ‘YOLO lifestyle,’ where they put short-term plans or activities ahead of longer-term goals.

And nearly half (49 per cent) lament a lack of disposable income preventing them from saving as much as they’d like.

The research was commissioned by NatWest to mark the launch of ‘Couch to Cash: The £5K Challenge’ which encourages young people to build healthy monthly savings habits.

The research reveals 60 per cent rely on bonuses from work or gifts from family to top up their savings pot each year.

But other than contributing to a workplace pension, 45 per cent are not actively saving for their retirement.

In fact, 17 per cent won’t be thinking about saving for retirement for ‘at least another 10 years’.

Olympic gold medallists Alistair and Jonny Brownlee have been enlisted to launch the challenge by starring in a light-hearted video offering helpful tips to tackle the key saving barriers.

Alistair said: “Any challenge can feel overwhelming to begin with, but breaking it down into smaller steps can help it feel more achievable.

“Both Jonny and I have always been believers in starting small in order to work up to the big things we want to achieve.”

Jonny added: “Whether you’re looking to save £5k, £500, or even £50 in 2025, it’s important to think about your own savings goal now to help you plan ahead for your future.

Switch bank accounts for free perks

“Starting is often the hardest part, but by setting yourself a target that’s right for you and planning the steps to get there, that’s already the first part of the challenge complete.”

The research also found 75 per cent would like to save more in 2025 than they did last year.

On average, these young savers hope to save £3,775 over the next 12 months and £19,920 by the end of the next five years.

To help them reach these goals, 70 per cent say a tool that allows them to track their progress and set savings targets would be helpful.

But many cited barriers to their saving ambitions, such as having to prioritise debt repayment (17 per cent) and economic uncertainty (16 per cent).

While one in 10 noted their irregular income can make it more challenging to save.

Mo Watt, a savings expert from NatWest, said: “Savings can feel like a difficult task, especially for younger adults, with one in 10 telling us they don’t know where to start.

“Breaking down your saving ambitions into smaller targets can help make the process more manageable, and we encourage our customers to take a little more action with the help of our Savings Goal Tool.

“Starting small today means you’re already taking action to plan for your tomorrow.”