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Scottish Friendly savings specialist Kevin Brown said: “Far from the outdated myth that many young people are less prudent with their money, what we’re seeing is a generation stepping up and taking real ownership of their financial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.”