Nearly a Third of Britons Regret Not Saving Sooner, Tesco Bank Data Shows
New survey finds 29% wish they had started saving earlier; regret is stronger among people in their 30s and 40s and many lack an emergency fund
Nearly a third of people in the UK say they regret not starting to save money earlier in life, according to exclusive data from Tesco Bank shared with This is Money.
Tesco Bank found that 29% of respondents overall said they wished they had begun saving sooner. The feeling was more acute among people in their 30s and 40s, where 36% expressed regret. One in 10 said they were concerned they had not built an emergency fund, which financial advisers commonly recommend should equal three to six months' salary.
Chris Henderson, Tesco Bank's save and pay director, said hindsight often drives the sentiment: "Hindsight is a wonderful thing, and when it comes to your hard-earned money, feeling like you've missed out on a chance to maximise your savings can be a tough pill to swallow." He urged savers to start small and build habits, recommending setting aside modest sums each month or using simple saving challenges.
The survey also highlighted younger adults' concerns about financial education. Seventeen percent of respondents in their 20s said they regretted not learning more about how to build a savings pot, and the same proportion regretted not setting financial goals earlier.
The human consequences of delayed saving were illustrated by the experience of Giovanna Smith, 54, a social worker-turned-matchmaker who runs Perfect Fusions. Smith said she did not save during her marriage and relied on her then-partner's savings. After a divorce left her supporting four children and returning to university, she said she had to rebuild her finances while relying on government support to finish her degree.
"The biggest mistake I made was not to save myself, instead of relying on somebody else that they were going to do it… at the time, I thought it was going to be forever," Smith told This is Money. She said she now has limited pension provision and little in savings, and that part of her home equity is held by her ex-husband, restricting her ability to move. She said she is funding her business through continued social work and hopes it will help finance her future.
Financial advisers stress the importance of time in saving because of compound interest. Tesco Bank provided an illustrative example: a £10,000 lump sum earning 2% interest per year would grow to £11,000 in five years and just over £12,000 in 10 years. Over 30 years the same investment would rise to about £18,212, and over 40 years to about £22,241.
Henderson suggested practical steps to help build a savings habit. "One of the simplest ways to make the most of your money is to get saving. Setting aside a little bit each month, or boosting your savings when you have some extra cash, will see you build up a healthy savings pot quicker than you think," he said. He recommended trying small savings challenges, such as putting aside £1 per day, and setting up automatic transfers from current accounts into savings accounts to reduce the temptation to spend.
Once a saver has established a routine, Henderson said using an Individual Savings Account (ISA) can help preserve returns because most interest earned within an ISA is tax-free. The annual ISA allowance is £20,000, though savers do not need to use the full allowance to benefit. Outside an ISA, savers begin to pay tax on interest once it surpasses the personal savings allowance and other thresholds; Tesco Bank noted that tax on savings interest generally becomes a factor once interest income exceeds roughly £1,000 per year, depending on individual circumstances.
Experts say that building even modest savings can provide a buffer against shocks and increase financial flexibility later in life. For many respondents in Tesco Bank's survey, earlier saving would have eased transitions such as divorce, redundancy or returning to education.
Smith said she now talks to her children about money and encourages them to start saving early. "I've taught them about finances," she said. "I've taught them about saving, and doing it as soon as they can, before they have families." She said two of her sons plan to buy a house together once they establish their careers, a step she hopes will offer them long-term security.
Tesco Bank's findings underline a wider public conversation about financial literacy and the institutional and personal barriers that can delay saving. Policy makers and consumer groups have for years promoted measures such as workplace automatic enrolment in pensions, financial education in schools, and accessible, tax-advantaged saving products as ways to help households build resilience. The bank's advice to start small, automate saving, and use ISAs reflects established consumer guidance aimed at turning short-term intentions into long-term financial habits.
