The role of Savings in promoting Positive Wellbeing

Saving isn’t just about rainy days. It’s about peace of mind, better sleep and a stronger sense that tomorrow will be OK.

That’s the clear message from new research by the University of Bristol’s Personal Finance Research Centre, which brings together a decade of UK data.

It found that people with savings - and people who save regularly - are generally less anxious about money and report higher life satisfaction than those who don’t save, even after accounting for income and other factors.

Why savings matter for how we feel

The report points to a positive link between saving and wellbeing: people who have savings, and those who save, are less anxious about their finances and more satisfied with life overall.

Further analysis shows this relationship holds even when income is factored in.

The report also highlights survey evidence that people unable to save regularly are far more likely to feel anxious when thinking about money (46% vs 29% among regular savers) and less likely to be satisfied with life (25% vs 44%).

The numbers: from stress to sleep

Bristol University’s new analysis of nearly 27,000 adults shows a steady, measurable lift in wellbeing as saving increases.

For example, 47% of non‑savers reported being mostly or completely satisfied with life, rising to 63% among those saving £300–£399 a month and 68% for those saving £1,000+.

Optimism follows the same pattern: 28% of non‑savers felt optimistic about the future compared with 49% among those saving £1,000+.

Sleep improves too: 72% of non‑savers rated their sleep as good, versus 83% among the highest savers.

Crucially, these aren’t just ‘who you are’ effects.

In models that control for age, income, health and more, having a history of regular saving still makes a difference.

Someone who managed to be a regular saver in just one of six survey waves had 34% higher odds of high life satisfaction than a non‑saver; saving in all six waves lifted the odds by 66%.

Financial resilience: a safety net that reduces risk

Savings don’t just feel good; they buffer shocks.

The report found that people who managed to save in as few as two of six survey years were about one‑third less likely to hold debts worth more than 10% of household income than those who never saved.

And while 12% of never‑savers were behind on bills in 2021–22, that fell to just 2% among those who had saved every other year.

Starting to save is itself associated with a small improvement in mental wellbeing over time, whereas stopping saving coincides with a noticeable decline.

Building positive money habits - and reaching goals

Saving tends to sit alongside other healthy money management behaviours -budgeting, planning and feeling in control - which are strongly linked to financial wellbeing.

The study tracks a cohort of young adults over a decade and shows how regular saving aligns with achieving big life goals: 82% of those who regularly saved in five or six waves became homeowners within ten years, compared with 15% of those who never regularly saved; even saving in one or two waves nudged the homeownership rate to 40%.

A key takeaway is to ‘reward the behaviour, not the balance’: the habit of saving - even small amounts - appears to be a key part of why wellbeing improves.

Who benefits most?

The gains from saving are visible across the board, but the biggest boosts show up for people on lower incomes and for working‑age adults.

Among households in the bottom income quintile, just 40% of non‑savers reported high life satisfaction, compared with 53% of regular savers on the same incomes.

That means low‑income regular savers enjoy life satisfaction levels similar to non‑savers much higher up the income scale.

The gap in mental wellbeing between savers and non‑savers is also widest among under‑35s.

What this means for everyone

• Start small, but start:

The research suggests even modest, regular deposits are associated with better wellbeing and stronger resilience. Small steps result in meaningful change.

• Make it automatic

Regular saving - however you do it - correlates with higher life satisfaction and mental wellbeing, and with lower risks of arrears and problematic debt.

• Think of saving as self‑care

It helps you sleep better, feel more optimistic and worry less about money - a practical way to support your mental wellbeing.

The bottom line is that saving is about more than building a pot; it’s about building peace of mind.

By creating a habit that fits your budget - even if it’s just putting away a few pounds a week - you strengthen your financial resilience and, over time, your overall wellbeing.