A recent study has revealed that a significant number of adults aged 35 and under have no emergency savings, with one in four young Britons having £500 or less stashed away in their savings accounts.

The survey found that 15% of respondents prioritise short-term plans or activities, adopting a ‘You Only Live Once’ attitude towards their finances, rather than focusing on long-term objectives like retirement.

However, despite the current savings deficit, three-quarters of those surveyed are planning to save more in 2025 than they did last year. Young savers aim to accumulate £3,775 over the next year and hope to have saved £19,920 by the end of the next five years.

Almost half of those polled cited a lack of disposable income as a barrier to saving more, while economic uncertainty and the need to repay debts were also identified as obstacles to saving. Consequently, many rely on work bonuses or gifts from family members to bolster their annual savings.

When it comes to long-term savings such as pensions, aside from contributing to a workplace scheme, 45% are not actively putting money aside for their retirement. The research, commissioned by NatWest, also highlighted that 17% won’t even contemplate saving for retirement for ‘at least another 10 years’.

NatWest’s savings expert Mo Watt has highlighted that one in ten people are often at a loss about where to begin when it comes to saving, which can make the process intimidating.

In an effort to motivate young adults to adopt better saving habits each month, NatWest has unveiled their ‘Couch to Cash: The £5K Challenge’. To give the initiative a running start, Olympic champions Alistair and Jonny Brownlee have been brought in.

Alistair remarked, “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 […] 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.”

Reiterating the sentiments of the Brownlee siblings, Mo added: “Starting small today means you’re already taking action to plan for your tomorrow. We encourage our customers to take a little more action with the help of our Savings Goal Tool.”