Millennials, generally considered to be those aged 18 to 34, saved more in 2016 than any other generation, according to new research from Charter Savings Bank. On average, millennials saved a total of £3,701 in 2016 – over £450 more than their baby boomer and Generation X counterparts, who saved £3,226 and £3,238 respectively.
2016 has undoubtedly been a turbulent year for the UK and savers alike. Interest rates set by the Bank of England were already at an all-time low and, following Britain’s decision to leave the EU, took a further hit in August down to 0.25%. This has meant that everyone has had to work even harder to make their savings work for them.
Despite this, over three quarters (78%) of millennials were able to save some money in 2016, with nearly two in five (37%) making regular monthly saving deposits during the year. Some 69% of Generation X were able to save in 2016, and seven in ten (70%) baby boomers managed to add to their nest egg.
When looking at the reasons why millennials have been so successful in their 2016 saving, 14% believe that being committed to putting away a regular amount every month has helped their savings and an additional 13% say a pay rise has helped them to put more money away. Encouragingly, just 4% say that low interest rates have hindered them and, despite stark warnings about the effect Brexit will have on the savings environment, just 6% believe this has prevented them saving.
Looking to 2017, nearly three in five (58%) millennials have a savings goal already in mind, with 18% planning to put money away for a new house in 2017, 13% hoping to gather enough savings for a holiday and 11% are in need of new household items.
Commenting on the findings Paul Whitlock, Director of Savings, at Charter Savings Bank said: “Millennials have come up trumps when it comes to saving money in 2016, beating the older generations to the title of top savings generation. However, what is most encouraging is that the level of people putting money away is so high across the board, and few have been hindered by the low interest rate environment or the economic uncertainty brought about by the UK’s decision to leave the EU.
“Our attention now firmly turns to 2017, and a year in which savers could enjoy some well-deserved relief as the Bank of England keeps a close eye on interest rates. For now, people across the UK should use the New Year to put at least one savings resolution in place and start 2017 with their best foot forward.”