Introduction
Paul Denton, chief executive of Scottish Building Society provides an overview of this year’s findings:
“Almost two-thirds of Scots dipped into their savings last year just to cover rising costs. That's the clearest sign yet that savings have stopped building the future and started propping up the present, a shock absorber for economic pressure rather than the ambition and positive habit they once were.
"The gap is now the real measure of financial resilience. Households with savings absorbed higher energy bills, rising mortgage costs and wider inflation without much damage. Those without a buffer have less disposable income to begin with, which made saving harder still. 73% say the current economic climate has hit their finances directly, and that squeeze falls hardest on people who had the least room to absorb it.
"Saving itself now feels like a moving target. Almost seven in ten Scots say they're worried about their ability to save at all through 2026, and 66% have already extended, scaled back or shelved their main financial goal. Those aren't separate trends. People are worried because the goal keeps slipping, and the goal keeps slipping because the ability to save keeps shrinking.
"The generational story is more even than the headlines suggest. Financial strain from the current climate is being felt by 72% of Gen Z and 69% of Baby Boomers, a three-point gap that undercuts any claim this is a young person's problem alone. Comparing who is dipping into savings to cover outgoings and the picture holds: 71% of Millennials against 60% of Baby Boomers. Older generations are under real pressure too, just from a different starting position.
"Scotland doesn't have a savings problem- it has a resilience problem. People still want to save and still have goals, but the pressures of recent years mean money is increasingly used to cover today's costs rather than build tomorrow's security. The task now is to rebuild that resilience: ease the pressure on household finances and make sure whatever people can put aside works as hard as possible for them.”
A nation feeling the squeeze
Almost three quarters of Scottish adults say the current economic climate has negatively affected their finances. That figure holds across every age group and every part of the country, which tells us this is not a problem confined to one generation or one postcode. Rising costs have reached into households that would not have described themselves as struggling a few years ago. It is the backdrop to everything else in this year’s Barometer, and the reason so many of the findings that follow are about pressure rather than progress.
Savings as a safety net, not a plan
Two thirds of Scottish adults have used their savings to cover outgoings in the past year. This is what a savings pot is for, and there is nothing wrong with using one. But it does change what savings are doing. Money set aside for a deposit, a holiday or a quieter retirement is instead absorbing the cost of getting through the month. The safety net is working, which is the good news. The concern is how often it is being called on, and how long it can hold.
Goals that have moved, not disappeared
Two thirds of Scottish adults have extended, reduced or shelved their main financial goal because of economic conditions. Worth noting what this finding does not say. It does not say people have given up. Most have adjusted the timeline or the target rather than abandoning the ambition altogether. A deposit saved over six years instead of four is still a deposit. The goal has moved, and for many it will move back. What the figure does show is how few households have been able to carry on as planned.
A generational gap in confidence
Four in five Millennials are concerned about their ability to save during 2026, against just over half of Baby Boomers. The gap is not really about attitude. Older savers have had more years of earning, lower entry costs into the housing market and time for compound interest to do its work. Millennials are saving into higher housing costs and squeezed incomes, often while supporting children or parents. The concern they report is a reasonable response to their circumstances rather than a difference in financial discipline.
How Scotland actually saves
Almost half of Scottish adults put money aside every month, while more than a third save occasionally, when they can afford to. A regular monthly habit builds quietly and compounds, even when the amount is small. Occasional saving depends on what is left at the end of the month, which in the current climate is often not much. If you take one thing from this year’s Barometer, make it this: the size of the amount matters less than the regularity of the habit.
Security comes first
Emergency funds are the single most common savings goal in Scotland, chosen by more than a third of savers. That puts building a buffer comfortably ahead of a big holiday, a new home or a new car. It is a sensible response to an uncertain few years, and it marks a shift in how people think about savings. Less about what the money will eventually buy, more about what it protects against. Scots are saving to be ready rather than saving to spend. That shift in mindset as an impact on the economy.
Small comforts over big commitments
Over half of Scottish adults think they could afford a holiday in the next 12 months. Far fewer expect to manage house improvements or a new car. Read alongside the emergency fund finding, a picture emerges of households protecting two things at once: a financial cushion and something to look forward to. The bigger commitments are what get deferred. A week away is achievable in a way that a new kitchen or a car on finance is not, and people are making that trade deliberately.
Young savers know what they are saving for
Nine in ten savers under 24 have a specific goal in mind for their money. That is the highest of any age group, and it counters the assumption that younger savers are the least organised. They may be saving smaller amounts against steeper costs, but they are doing it with purpose. Goal-focused saving is one of the strongest predictors of sticking with the habit. This generation faces the hardest conditions in the survey, and they are approaching it with more clarity than any other.
Helping Generations Prosper
As a mutual, we’re owned by our members, and that shapes how we think about findings like these. A savings habit built in your twenties can give you more choices in your fifties, while the financial security we build today can help create opportunities for the generations that follow. This year’s findings are a reminder that becoming financially secure doesn’t happen overnight and that having the right support early on can make a difference for years to come.
Whether you’re saving a fixed amount each month or putting aside what you can, when you can, it all adds up. And that’s where we can help. As a mutual, we’re here to support our members at every stage, helping people make the most of their money today, while building a more secure future for themselves and their families. That’s what we mean by Helping Generations Prosper.
Methodology
The research was conducted by Censuswide, among a sample of 1,000 nationally representative Scottish consumers, aged 16+ . The data was collected between 25/08/26 - 02/09/26. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles.
For the purposes of this research, generations are defined by age/birth year as follows: Baby Boomers (1946–1964), Gen X (1965–1980), Millennials (1981–1996) and Gen Z (1997–2012).
You can view our 2025 Savings Barometer findings here.
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.