What proportion of salary do you save?

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I'm still recovering financially from periods of insecure work, maternity leave, and recently buying a house but I'm keen to build up savings. I'm late 30s and am only really just making consistent pension contributions in recent years. What percentage of your salary do you save each month? How much do you prioritise accessible saving over pension?

I saved between 10 and 30% it turns out. You still have quite a few working years to go, but have you had no pension prior to now? If not, or if your pension isn’t very good, it might be worth getting some advice from a financial advisor.

Personally, I think it’s optimal to have a balance of:

• easily accessible savings (for if you need a new fridge, the boiler breaks down, the car service is really expensive),
• some savings which either locked away or in your brain they are (I have mine in a stocks and shares ISA technically I can get the money out any time but I would lose all the interest for that year so I’m incentivised not too).

I have a good pension through work that I’ve been paying into since I was in my early 20s so I can’t really advise there. But the state pension is over £1000 a month, so remember you’ll get that too.

It has been very different at different stages of life.

Living at home with parents ? Quite a bit
First property, and sky high mortgage rates ? Nothing
Interests easing happened at the same time we started our family, so were paying out for childcare ? Nothing
No longer paying for childcare, but funding 3 teenagers ? only a little
Finally paid off our mortgage, at a time when the dc were moving into adulthood ? Loads.

20% after pension contributions. I have a workplace pension scheme that I top up through salary sacrifice, then I save an additional 20% into various pots. 3DC all in primary school so was able to up savings once we both longer had nursery fees

ETA - bonus goes to pension to keep under tax free threshold

You need to decide what's best for you on your circumstances. There's so many variables that it's unhelpful to compare with other people with possibly wildly different priorities and needs.

People also define savings and structure their money in different ways such that a number is effectively meaningless. It's also unclear as to whether you're single or have a partner as you talk about I a lot but then mention maternity leave indicating a current or former partner, so another income or possible child maintenance. All this would make a difference, as would job security, current disposable income, lifestyle preferences, marginal tax rate etc etc.

In your position, building pension savings is important but not at the cost of short/medium term security, especially if your income is insecure and you'd struggle to cover the basics if you lost it. It's also relevant that you'll be able to address your pension later on, once childcare costs have dropped, income may have increased due to career progression and mortgage will have reduced, although it's worth bearing in mind that mortgages are very cheap debt, so you'll almost certainly come out ahead if you let it run it's course and invest spare money instead.

The financial flow chart is a good 'to do' list to work through, so you can see what you've already got on top of and what needs more work, but it's probably not a question of prioritising one or the other but saving some, putting some in a pension, paying all your current bills and expenses and deciding on what level of lifestyle fits in with all this and your current income.

Have a look at:

The UK Personal Finance Flowchart | UKPersonalFinance Wiki

I now put 25% into my pension, which is quite a chunk of my salary. It’s not a defined benefit scheme, so I have to choose where to invest it and all the risk is mine. My salary is about 34k gross.

Unfortunately there is nothing to save. I live hand to mouth currently and am trying hard to change that.

Just under 20% of net each month with top ups if my current gets high, but some of that goes towards overpaying the mortgage. 13% into pension.

6% in pension (around 1k a month including 12% employer contribution) and aim for about 5% in savings in ISA

You need to decide what's best for you on your circumstances. There's so many variables that it's unhelpful to compare with other people with possibly wildly different priorities and needs.

Exactly.

People also define savings and structure their money in different ways such that a number is effectively meaningless.

This.
I have 'savings' in that I haven't spent money at the end of the month, because

• I know that some months are more expensive than others
• I know that unexpected bills crop up now and then (eg an appliance breaks and needs replacing, or I get a puncture and need to replace a tyre)
• I want to book a holiday at some point in the next few months
• One room needs decorating each year, to keep on top of things

But then different savings in that

• I will need to replace the car in 6 years time
• At some point in the next 10 - 20 years it is likely I'll want to replace a bathroom or kitchen or the central heating, or some other 'big job'

But some people will be fortunate enough to have enough money to want to

• Save to support dc at University or for driving lessons or car insurance
• Or even save to give their adult dc a house deposit or pay for their wedding
• Or Save toward a 'once in a life time' holiday, or to buy a caravan or something.

People are talking about 'saving' into a pension. My pension has always been taken from my gross salary before it hits my bank account, so it has never been on my horizon as 'savings', it feels more like tax and NI (and Student loan for those that have them) than 'savings' as it is something you don't see and aren't consciously making a choice about each month.

All this would make a difference, as would job security, current disposable income, lifestyle preferences, marginal tax rate etc etc.

Yup

I think OP is just canvassing to get an idea of what people do with their money. I see no problem with that; though of course PPs are right that money is always complex and carries different meaning for everyone.

After pensions, we aim to save 20% of our net income; couple of months it's a little more, couple of months it's a little less. The money mostly goes to stocks and shares ISAs so in effect we can't touch it (we could but we'd pay tax on any interest accrued); a small amount goes to an easy access savings account in case of broken boilers and also a holiday fund.

In your position I would go and speak to a financial advisor re where they would recommend you stick any savings given the pensions issue. I would hazard a guess that they would suggest putting most in a pension and then a smaller amount in a savings account.

Between 25% to 35% saved each month.

Currently save 50% of take home pay on top of of pension contributions.

BUT, I hope to have a baby next year and my saving rate will go down quite a bit as a result. So I am trying to prepare financially for that.

On a good month I can save 25% of my salary. I have a workplace pension which I put the minimum into because I prefer to diversify my savings. I have a stocks and shares ISA, an instant access cash ISA and a high interest saver. I spread between those.

Zero except for my work based pension. I have saved previously and will save again (hopefully!) but right now I’ve got expensive children - out of school activities, driving lessons etc. My aim is that all the money being spent on this will go on savings and holidays once they are more independent

Don’t look at saving/pension in isolation…finances revolve around much more than just that.

Do you have any debt?
Do you have 3-6minths of core expenses/outgoings saved for emergency fund?
what is your pension currently invested in? What fees are you paying?
Do you need/want to reduce working/retire before you can access your pension?

I save 8% into my pension (work matches this so 16% total), then 15% goes to savings. I split it between overpaying mortgage, family accessible pot and long term savings. DH saves around the same % of his too.

We’re in the expensive nursery years but only got one more year of that until our youngest finishes nursery so should be able to save more next year.

I got to 45 with no pension virtually. I now pay 30% of my wages into my pension and 10% into savings and overpaying the mortgage.

Zero

As PPs have said a lot depends on your stage of life. When I was planning a baby I increased my savings each month so that by the time I left work I was saving 100% of it less work expenses. If I wanted to make a big purchase on credit I’d save the monthly repayment for 3-4 months to check I could afford it first then I’d have added to my savings and didn’t need to borrow so much.

As I got older and was earning and spending more, I always tried to keep at least 6 months’ worth of pay in instant access savings to cover a job loss or illness, major purchase break down etc. I always aimed to save at least 10% of salary in a pension and to have my mortgage on a fixed rate making overpayments when allowed. Any money left at the end of the month, I stuck it in my savings account. Any windfalls I’ve had, I spent half on fun things and half in savings.

However, regardless of my life stage I have a monthly standing order set up which I’ve never cancelled. Some years it’s just £10 a month, other times it can be much more, but something always goes to savings each month and it comes out of my account on the same day (or as close to as possible) as when my income goes in. I’ve done this since I started work.