How much do you save?

FirstTimeSolo

Hi 

Just generally interested in what % of their salary do people save each month, essentially to understand if I am not saving too little! 

Thanks

eskbanker

There's no right or wrong answer or a standard percentage, it all depends on income, dependents, location, age, lifestyle choices, housing, and a myriad of other factors, so figures will range from 0% (or technically even negative for some) up to nearly 100%....

FirstTimeSolo

@eskbanker not asking for a right answer, just a general discussion on what people tend to save. 

I put 6-8% in company pensions and tend to save about 35% of my after tax income each month. 

TheMilkmansDad

Personally I save very little - maybe 5% of take-home pay - as I have enough in savings to cover any unexpected expenses or loss of income.

I contribute around 15% to my pension which I prioritise over savings.

Alexland

FirstTimeSolo said:

Just generally interested in what % of their salary do people save each month, essentially to understand if I am not saving too little!

It varies so much on circumstances and objectives. But over the past 5 years around 50% of the money we earned went into our pensions as sal-sac contributions and then around 50% of what we took home after tax etc was invested into ISAs. That's not really sustainable as we will need new cars and home improvements eventually but we are trying to keep it running at that rate for as long as we can.

FirstTimeSolo

@TheMilkmansDad ah cool, did you build up the savings through saving a higher % or mainly through investments that did well?

MaxiRobriguez

FirstTimeSolo said:

@eskbanker not asking for a right answer, just a general discussion on what people tend to save. 

I put 6-8% in company pensions and tend to save about 35% of my after tax income each month. 

There's not really a general answer, everyone is different.

I'm currently at a 55% savings/investment rate, or 65% if including mortgage payments - but I earn quite well and I'm a cheap date.

People on this forum tend to earn more than average and are well educated so make their money work for them, so answers provided here will be much higher than your average man in the street.

FirstTimeSolo

I currently live in London so rent takes up a lot of income (zone 2), but I will be relocating out of London in a few months with the same job so my savings would be closer to 50% as rent will be lower based on what I have seen on Right Move. 

TheMilkmansDad

FirstTimeSolo said:

@TheMilkmansDad ah cool, did you build up the savings through saving a higher % or mainly through investments that did well?

I saved early in life (now 42) and am pretty good at not touching it! As others have said, there is no given right or wrong figure, everyone's circumstances and aims are different.

When the mortgage is paid of next year I'll contribute more to pensions, until the kids go on to further education at which point we'll see how much the savings figure needs replenishing!

kuratowski

Yes, I think if you ask that question on the savings and investments forum of a money saving expert site, it's fairly safe to say the answers you get aren't going to be representative of the wider population!

43%, for what it's worth.

FirstTimeSolo

Thanks all who have replied. I understand this is not statistically relevant data but I am only looking for general feedback for my own understanding and I fully understand this is a small specific demographic represented on this forum - that's ok, I am part of the same demographic too I promise not to use this data to publish a paper or write an article!