How much Brits should actually have in their savings, according to their age
Rent: • Three months: £6,600• Four months: £8,800• Five months: £11,000• Six months: £13,200
Mortgage:
• Three months: £8,100 • Four months: £10,800• Five months: £13,500
• Six months: £16,200 (Picture: Getty Images) During this time of life, a solid six months is expected for financial security. Unfortunately, Prakash says that increased responsibilities and the impact of financial shocks, such as job loss, will be greater. Anything less in your savings account could be detrimental in the event of an emergency.
Rent: £13,200
Mortgage: £16,200 (Picture: Getty Images) For 51 to 60-year-olds, six months to a year is necessary. Prakash says that in addition to the above expenses, it is also important to be prepared for an early retirement or redundancy. Wages also start declining at this point, going from £42,796 between 40 to 49, to £36,036 from 60. From 50 to 59, it's £40,456.
Rent: • Six months: £13,200• Seven months: £15,400• Eight months: £17,600• Nine months: £19,800• 10 months: £22,000• 11 months: £24,200• 12 months: £26,400
Mortgage: • Six months: £16,200• Seven months: £18,900• Eight months: £21,600• Nine months: £24,300• 10 months: £27,000• 11 months: £29,700
• 12 months: £32,400 (Picture: Getty Images) 12 months of expenses are recommended at age 60 and above. This allows for a smooth transition into retirement. Those still in the workforce will earn, on average, £36,036. However, 94.4% of people aged 75 to 84 years are retired, according to 2023 ONS data. It rises to 95.2% for those 85 and over.
Rent: £26,400
Mortgage: £32,400 (Picture: Getty Images) As well as providing saving recommendations for each age group, Prakash has also shared five tips for liquid savings. These include:1. Set a clear goal after tracking your monthly expenses; aim to cover at least three to six months of expenses.2. Open a separate easy-access savings account separate from the current account. This avoids the temptation to spend.3. Save and then spend - rather than saving what remains after spending. Set a monthly standing order to transfer an amount from your current account to your savings account. Even £50-£100 monthly adds up over time.4. Treat the savings account as an emergency fund only - not for holidays, sales, etc.
5. Choose high-interest, easy-access savings account options provided by your bank. This will ensure your money grows, and avoids monetary trouble in the event of an emergency (Picture: Getty Images)
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