Millennials and Gen Z lead the way in push for financial resilience
Younger Brits are twice as likely than older generations to be saving more than a year ago
Millennials are seven times more likely than Baby Boomers to be investing more than 12 months ago
Over three quarters (76%) of Gen Z and (seven out of 10))71% of Millennials have opened a new savings or investment product over the past year
Younger generations are challenging outdated stereotypes that they are financially irresponsible by showing greater dedication to saving and investing than their older counterparts, new research from Scottish Friendly reveals.
The research shows that while a third (31%) of adults are saving less than they were a year ago, Millennials and Gen Z are nearly twice as likely than Baby Boomers to be saving more than 12 months ago.
More than four in 10 Gen Z (44%) and Millennials (43%) say they are saving more than they were 12 months ago. In contrast, just 27% of Gen X and 22% of Baby Boomers report an increase in their savings.
The pattern is similar when it comes to investing: 29% of Gen Z and 35% of Millennials are investing more than a year ago, compared to only 15% of Gen X and a mere 5% of Baby Boomers. It means Millennials are seven times more likely than Baby Boomers to have increased their investment contributions over the past 12 months.
This surge in financial activity is particularly evident in the uptake of new financial products. Between January and March 2025, more than three quarters of Gen Z (76%) and seven in 10 Millennials (71%) opened or began using a new savings or investment product. Among older age groups, just 50% of Gen X and 37% of Baby Boomers did the same.
The motivations behind this shift vary by generation, but Millennials stand out as the group most likely to say they’ve become more aware of the importance of saving over the past year (30% vs 22% of Gen Z, 28% of Gen X and 26% of Baby Boomers).
Scottish Friendly savings specialist Kevin Brown said: “Far from the outdated myth that many young people are less prudent with their money, what we’re seeing is a generation stepping up and taking real ownership of their financial future.
“Against a backdrop of high living costs, economic uncertainty and competing demands on their income, many young adults are not only saving and investing more but doing so with real purpose and long-term intent.
“Whether it’s setting aside money each month or becoming more engaged with financial products, many younger generations are showing a level of financial maturity and forward planning that deserves recognition — and support.
“But while many young people are clearly doing their part, it would be great if the government made a small change to make a big difference for the benefit of the next generation. One simple but powerful change would be to amend the rules around Junior ISAs to allow grandparents and other family members to open accounts on behalf of a child.
“This would not only ease the pressure on parents — many of whom are juggling the cost of childcare and day-to-day expenses — but also give the next generation a stronger foundation for long-term financial resilience as they grow up in an increasingly complex world.”
-ENDS-
For more information contact:
Hilary Morison
07793 564 351
Notes to Editor:
The research that sits behind the Scottish Friendly Family Finance Tracker was conducted by the 3Gem between March and April this year. It comprises responses from 2,511 UK adults aged between 18 years and 65+.
The Scottish Friendly Family Finance Tracker sets out to track how UK consumers are managing their short-, medium- and long-term financial goals and priorities. In terms of short-term goals the focus in this wave of the research was on managing childcare costs over the summer holidays.
Short-term financial goals were described to participants as being goals up to 6 months ahead, medium-term as being between 6 months to 5 years ahead, and long-term as 5+ years ahead.
Remember that the value of investments can go down as well as up and the child could get back less than you paid in. Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides its members and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.