- 31% of people say they’re currently saving for a holiday - including 28% of men and 35% of women*
- For men it’s the second most common financial goal after their pension, while for women it’s joint first
- More of those in Gen X than any other generation say they are saving for a holiday
- 73% of people saving for a holiday are confident they’ll save enough, making it one of the financial goals we’re most sure about
- By contrast, just 54% of those saving for retirement and 50% of those saving for a property deposit are confident they’re doing enough
Sarah Coles, head of personal finance at AJ Bell, comments:
“We’re united in our unshakeable commitment to a fortnight in the sun. AJ Bell research shows almost a third of people are currently saving up for a break – rising to 35% of women and 36% of Generation X (age 46 to 61). Nobody is going to convince us there could possibly be a more pressing financial priority than taking time away from the daily grind. But if you’re throwing everything you have at it, there’s a decent chance you’re leaving horrible holes in your finances.
“Saving for a holiday is far better than the alternative. When you borrow to pay for a break, you ramp up the cost, adding interest on top of everything else. In addition, instead of considering your savings to be the pot of money you can spend, there’s a risk you see your credit limit as your budget, so you splash out more than you otherwise would and have an even bigger debt repayment mountain to climb.
“It’s also a great way to establish a savings habit. While it can feel difficult to put aside large sums of money you’ll only get to benefit from in the decades to come, it’s much easier to save something manageable towards something that’s just around the corner.
“However, there’s a real risk that we’re saving for a holiday and neglecting other pressing priorities. The same research asked people if they were saving for emergencies and across the board, fewer people said yes – at just 27% overall, 25% of Gen Z and Boomers, 27% of Millennials and 32% of Gen X. It means every generation is more likely to prioritise saving for a holiday than building their emergency savings.
“Some may have enough emergency savings in place, but an awful lot of those pushing it down the to-do list have less than the recommended amount – to cover 3-6 months’ worth of essential spending while we’re working and 1-3 years’ worth in retirement.
“Even when we’re making an effort in other areas of our finances, we’re not as committed to it as we are to our holiday savings. The fact that most eligible workers are automatically enrolled into a pension at work nowadays means that 38% of people are currently saving for retirement - including around half of those aged 30-60, according to our research. However, we’re not entirely sure we’re doing enough: only 54% of people paying into a pension are confident they’re on track – compared to the 73% are confident they can cover the cost of their holiday.
“Gen X was identified by the Pensions Commission as being at risk of not having enough set aside for their pension, and only 17% say they’re very confident about hitting their retirement savings goals - lower than any other generation. So the fact they’re the most likely to say they’re saving for a holiday means some of them might need to rethink how they allocate their savings.
“Women are particularly short of confidence that they’re on track with their pension contributions – only 46% say they’re confident compared to 62% of men. Sadly, this is reflected in a worrying gender pensions gap, with government figures revealing women hold 48% less in their pensions than men. The figures show pensions are further down their priority list than for men – with 40% of men paying into their pension compared to 35% of women. At the same time women are far more likely to say they’re saving for a holiday than men.
What can you do?
“Nobody is suggesting that you should have to give up on holidays. However, it’s worth considering whether you can free up more money from your monthly budget, so you can save and invest towards several goals at once. If you shop around for all the boring things in life, it can help you build towards the ones that really matter – whether that’s your annual holiday or retirement: the longest holiday of your life.
“It’s also a good idea to keep as close an eye on your progress towards these goals as you do on your holiday savings. It’s worth using a pensions calculator to see if you are on track, and spending some time working out what you spend on the essentials, so you know what you’re aiming to amass in your emergency savings. You might need to set aside a little while for this admin, but it’ll pay off if you can really relax on your sun-lounger with the peace of mind that everything is in hand.”
*AJ Bell/Opinium. Based on a nationally representative sample of 2,000 UK adults carried out by Opinium on behalf of AJ Bell between 3 and 6 March 2026
