How much should you save by each age?

The internet is full of videos with people telling you that you need X amount saved by a certain age.... I think these videos are depressing!!! So today we will explore the national averages and expert wisdom to figure out if there is a correct amount to save and have saved by each age that will not send us under.

We will look at:
The national average saving rate for each age
The average amount each age group have saved
What the experts say we should have saved
What I think is the approach.

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UK Savings study

Fidelity's rules of thumb

This weeks song:

[MaryOlson]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[Shash-sxngh]

Mate this is why I only watch you in terms of investing and money! You realise that all of us have different circumstances. I had my first job at 25 and I'm 30 now, live with my single mum who can't work and I've got less than £500 saved but most of that is MY fault as I didn't have the financial education which I do now thanks to people like you. So I'm 30 now and I'm starting again, sometimes I feel like I've wasted the last 5 years but we live and learn..

[nickmorrison]

Oh my giddy giddy gosh, you are *crushing* this whole YouTube thing ! One of the most uplifting videos I've ever watched on this topic. Keep up the good work lad!

[rahsen]

People need to start talking about money in the UK. It's nothing to be ashamed of and you learn a lot in return. What a banger, Damo!

[DamienTalksMoney]

That clip of a man eating bricks makes my teeth hurt..

[darrenaddyman]

I started my investing journey as I have worked full time since the age of 16 and have no higher education so it became increasingly important for me to try and build some sort of wealth for the future, so started to take advantage of a very good works pension scheme and opened a S&S isa and also began to save. I am 23 this year and have 10k in my works pension, 2k in my S&S isa and over 7k in savings I am incredibly proud of how things are currently going and am just so glad that I picked up all of this knowledge when I did at a youngish age, now I cant advise my friends and everyone else my age enough on how important it is to do the same.

[domcafc]

Honestly one of the best youtube videos I've watched. Your compassion, care and genuineness really comes through. We need more people with an attitude like yours on the internet Damien!

[SocalNewsOne]

Great video! I am almost 60 and left my job which was draining the life out of me two years ago. I did NOT have the Fidelity box numbers or any of the other 'expert' savings amounts. What almost none of these experts discuss is how much you spend. They all say to 'maintain' your current lifestyle but looking at my parents who retired early as well, all their expenses have gone down. We budget to keep the household running and always extra for big family vacations. Budgeting and keeping track of spending will help so many people realize they can leave a job that is draining them and find something they really want to do. Keep up the great content!!

[behzg]

It's a scary subject.
I remember sitting in Pret over 3 years ago researching this question at 30 years old.
My advice to anyone who cares is just start, no matter how small the amount. Be ambitious and positive. Try and increase your income.
Have your own goals and work steadily towards them because you'll look back as I am today and be proud and a bit shocked at how much you can achieve in a fairly short amount of time.

[MonsieurBlain]

I didn't start heavily saving and investing until I was 25. Went from a negative networth of -$2K to $50, 000 at 28 years old.

Learning finance, margins, spending, investing habits on Youtube taught me alot.

Guys like you keep me on track

[xistacio]

I'm over 40 and still quite new to all this.
I'm just sad i could not do it earlier.
But as you wisely said, I am the one setting my targets.
You're wise. Your mom should be proud! :)

[wmcc]

Great video Damo. I am one of those late starters you spoke about, turned 40 this year and only just started paying attention to this sort of stuff. And it is exactly as you said, watching YouTube and reading these articles in the beginning did make me feel like I'd left it too late and my efforts were now pointless.

But then I thought there is no cookie cutter, one size fits all template and started anyway. It's better to start late than not start at all. Just save as much as you can when you can.

Keep up the good content buddy.

[niceandcurly]

This was exactly the question in my mind recently. I had a late start in life because I had to be a carer for my sick mother, and I feel like I will never have my head above water. With a tiny pension, no home, and little savings I cannot even fathom being able to afford having a child one day.

[mrc]

Great video, mate.That acknowledgement that everyone of us is different, living with a unique set of circumstances, is gold and it help make people think for themselves. Orthodoxies are great in a perfect world, but how many of us have that experience? I didn't. I was doing ok for a late bloomer in my 50s, but with the economy in the sh*tter, I cashed-out of my S&S ISA and paid off the house and got my two-year emergency fund set aside. Now I'll be saving 75% of my take-home straight into the S&S ISA again - going balls out. Anyway, keep doing what you do, brother. You are absolutely essential viewing. Love it!

[gemma]

I was one of those that watched the other videos and felt worried as I was miles off where I was supposed to be. I still have a lot of work to do as the big 40 looms but working on it. We should be teaching money and investing in schools. Thanks for a genuine and honest video.

[PrinciplesPersonalFinance]

I quoted that Fidelity research in one of my videos but I actually think your point here is spot on... you have to run your own race and that's the most important thing. Especially as it can be demotivating for many to use quite literally 'rule of thumb' 🙃 comparisons. Nice one man. Solid message and completely agree 👍

[darwingracias]

Yes. This was needed Damien. Thank goodness you are talking about it.

I remember, after the pandemic started, and everyone was suddenly advising to invest in this and that, it left many many older people feel like complete idiots, because they didn't start saving/investing enough early on. (I'm in my early 30's, and even I felt like it for a certain period of time).

Many people have many choices/circumstances, like being married early, having kids early etc, which makes them happy. Not saying money isn't important, but some advice saying, you should remain single as much as possible, have kids later on, doesn't make sense to those whose happiness is more dependent on family etc rather than money.

Just saying some people place more importance of money, some on family, some on dreams... All are valid.. no one is wrong, no one is right. Be content with whatever is made.

Like they say in the gym (which you stated in the end), don't compare your body with other athletes in the gym, compare yourself to your past.. same applies to our personal finance.

Cheers Damien. Keep up the good work. Hopefully can meet you when I come to the UK 🙂

[glennwhitlock]

Bang on about setting your own goals. And although saving is a long term thing, making small, incremental changes to my lifestyle helped me realize noticeable gains on a regular basis over the short term. Saving then became part of my lifestyle - a habit, which for me, is the key. Nice one.

[ianc]

Good video again, At 56 I already get £37, 500 a year pension + I still work and have £205, 000 cash (cash + Shares) but as you say I still worry about money because I have not hit MY targets yet, I know what I want to do when I retire at 63, but as a recent widower with no plans to meet anyone else I need to ensure I have enough cash for old age, I know this is a lot of money especially when you take into account a large house that I owe less than 3% on, I have no problem talking about money but don't want anyone thinking I am bragging about what I have, because apart from making sure I can afford to look after my self when I am old (older) and going to watch England play cricket around the world I don't have any ambitions.

[AlbertQian]

Came for advice... stayed for the pep talk