Aspiring young homeowners increase savings

This compares to a UK average of 18%. However, nearly half (44%) of the population plan to stick to a monthly budget in the New Year.

In addition, more than a third (35%) of 18-24 year-olds said they wanted to increase their savings with the top aim being to buy a house (20%).

The findings illustrate that younger people are maximising their potential to save, which could be attributed to the positive impact of auto-enrolment.

Research from Friends Life earlier this year revealed how important it is to actively contribute to retirement savings from a young age. An analysis of ONS data found workers on average face a salary drop of £400 per year once they turn 50.

Andy Curran, Chief Executive Officer, UK at Friends Life said:

“As our thoughts turn to 2015, it is really interesting to understand what people’s financial priorities are. The positive news is that many feel confident about their financial situation and are already taking steps to ensure they plan ahead and save for both the short and long term.

"This is particularly evident among those aged under 25 who are just entering the workplace and appear to have a healthy approach to saving. This is a crucial shift in savings behaviour as our recent Retirement Savings Map found currently many people face a £96.67 per week financial shortfall in retirement. This demonstrates why it is so important for people to take control of their finances sooner rather than later.”