MILLENNIALS BUCK THE SAVINGS TREND AS MORE THAN A QUARTER OF UK ADULTS SAVE MORE IN Q2 

Generational drill-down: different realities 

Millennials are the standout story of Q2 and are the only generation to increase savings activity quarter-on-quarter, rising to 39.9%. Their top motivations are travel (13.0%), their children’s future (11.7%) and retirement (8.8%), reflecting a generation balancing aspiration with responsibility. The internal divide within the generation persists, however, with 21.3% having no savings at all. 

Gen Z are “super savers” for the second quarter running, remaining the most savings-active generation at 42.4%. Their motivations are milestone-driven – house purchase and holidays jointly top the list (both 10.9%), with starting a business (5.7%) also featuring. More than one in six (18.2%) have already built savings pots exceeding £10,000. 

Gen X continues to feel the greatest financial strain, with just 17.1% saving more than usual in Q2, the sharpest quarterly fall of any working-age generation, down from 24.4% in Q1. Nearly half (48.1%) cite a lack of disposable income as a barrier, the highest of any generation, while retirement (18.5%) and later-in-retirement planning (14.5%) dominate their savings motivations. 

Baby Boomers remain focused on retirement, with travel (18.8%) and saving for use during retirement (18.8%) jointly topping their motivations, followed by retirement planning itself (16.2%). More than a fifth (22.3%) hold over £50,000 in savings, reflecting the generation’s accumulated financial security. 

The Silent Generation is the most financially secure, with 25.4% holding more than £50,000 in savings and only 4.2% with no savings at all. Their priorities reflect later-life planning: children’s future (16.7%), care costs (14.6%) and later in retirement (12.5%). Nearly four in ten (39.4%) report no barriers to saving. 

Motivations: experiences vs necessity 

Holidays and travel remain the top savings motivation nationally (13.4%), but the generational split is stark. Older generations save primarily for lifestyle and retirement; younger savers are focused on milestones including first homes, education and starting a business. Gen X sits in the middle: saving for retirement out of urgency, not aspiration. 

Louise Halliwell, Group Savings Director, Kent Reliance said: 

“Our second SaveUp Quarterly Savings Index points to a complex and increasingly divided picture of UK savings in 2026. It is genuinely encouraging that more than a quarter of UK adults are still saving above their usual level despite significant economic headwinds, and the Millennial story this quarter is a positive one, showing that determined saving can continue even when conditions are tough. 

But the data also reveals a more troubling reality for many. Gen X in particular are caught in a difficult position – they have the most to save for and the least room to do it. Rising bills are squeezing their disposable income at exactly the point in life when building financial resilience matters most. 

What makes this more concerning is that the policy environment isn’t helping. Recent changes to ISA rules risk doing the opposite of what was intended. The people who need the most support to save are precisely the ones most likely to disengage when the rules become harder to navigate. Complexity drives inertia, and inertia is the enemy of good savings habits. 

Saving doesn’t have to be all or nothing. Whether it’s moving to a higher-rate easy-access account, making the most of your ISA allowance, or simply reviewing where your savings are sitting, small, deliberate steps can make a meaningful difference, even when household budgets are under pressure.”