Younger generations in Britain are taking the lead on building financial resilience, saving and investing at far higher rates than their older counterparts, research from Scottish Friendly has revealed.
The study shows that millennials and gen Z are nearly twice as likely as baby boomers to be saving more than they were a year ago. Nearly a third (31 percent) of all adults reported saving less than 12 months ago, but younger people bucked this trend with 44 percent of gen Z and 43 percent of millennials reporting that they were saving more. By comparison, only 27 percent of gen X and 22 percent of baby boomers reported an increase.
The trend is even starker in investing, with 29 percent of gen Z and 35 percent of millennials investing more than they were a year ago. Among gen X just 15 percent were investing more and baby boomers 5 percent. Millennials are seven times more likely than baby boomers to have increased their investment contributions in the past year.
The appetite for new financial products is also strongest among younger adults. Between January and March 2025, more than three quarters of gen Z (76 percent) and seven in ten millennials (71 percent) opened or began using a new savings or investment product. Among older groups, the figures were 50 percent for gen X and 37 percent for baby boomers.
Motivations differ, but millennials were most likely to say they had become more aware of the importance of saving over the past year, at 30 percent. This compared with 22 percent of gen Z, 28 percent of gen X, and 26 percent of baby boomers.
Kevin Brown, savings expert at Scottish Friendly, said: “Far from the outdated myth that many young people are less prudent with their money, what we’re seeing is a generation stepping up and taking real ownership of their financial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.”
Brown added that government action could further boost resilience. “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,” he said. “This would not only ease the pressure on parents … but also give the next generation a stronger foundation for long-term financial resilience.”
