Many Brits are worrying about their savings, but you might already be performing better than you realise. Personal finance expert Gabriel Nussbaum has revealed an important threshold demonstrating when savers are genuinely ahead of most people across the country – and it may surprise you what the threshold actually is.
In a TikTok video, Nussbaum outlined several telling indicators that people are in a secure financial situation. « If you have more than £1,000, you’re doing great. Second, if you have more than £5,594 in savings, that is the median savings currently in the UK, meaning that if you have more than that, you’re in the top 50%, and that’s skewed by the older generation. So, if you have more than £1,000 under the age of 35, you’re doing better than 50%. If you have more than £3,500, you’re in the top 50%. » If you are below that, though, you are in the lower 50 per cent and may want to look at what can be done to boost your numbers.
According to the Office for National Statistics (ONS), the median UK household had savings of approximately £5,500 in 2024, meaning numerous people feel they’re lagging behind even when they’re performing reasonably well.
However, the Money and Pensions Service reports that nearly half of UK adults have less than £1,500 in savings, rendering them vulnerable to unforeseen expenses or emergencies.
The ongoing cost of living crisis has heightened concerns, with energy bills, food prices, and mortgage costs placing pressure on household finances.
However, Nussbaum emphasises that modest, regular savings are more important than pursuing a substantial balance immediately. « Even putting aside a few hundred pounds a year can position you ahead of the average, » he says.
The video has sparked numerous responses online. « Who knew how well I was doing? » replied a user, while another admitted: « I feel like a success at life now, thank you for that. »
However, many are becoming increasingly worried: « Noted. I must do better. Less spending and more saving needed, » recognised one, followed by one more who confessed: « Oh okay, okay, so I have actually been doing worse than I first thought. »
Notably, younger savers frequently underestimate their standing. ONS data indicates that under-35s with merely £1,000 in savings are already performing better than half their peers. By £3,500, they’ve surpassed 50% of the adult population, illustrating the impact of early, consistent saving.
Financial experts recommend reviewing your accounts regularly, automating deposits, and monitoring emergency funds to maximise your money. Whilst inflation may seem overwhelming, establishing a buffer now – even modestly – can prove significantly beneficial over time.
So if your bank balance reaches that £3,500 threshold before you turn 55, take a moment to appreciate your achievement. According to Gabriel Nussbaum, you’re already performing better than you might think – and that’s something worth celebrating.
