A recent survey has discovered that many adults aged 35 and under have no emergency funds set aside, with a quarter of younger Brits holding £500 or less in their savings accounts.

Prioritising short-term plans or activities, 15% of those surveyed confessed to adopting a 'You Only Live Once' approach to their finances, instead of long-term goals such as retirement. Despite their current lack of savings, 75% are aiming to save more in 2025 than they did last year, with young savers hoping to put away £3,775 over the next 12 months and £19,920 by the end of the next five years.

Nearly half of those surveyed stated that a lack of disposable income prevents them from saving as much as they would like. The report also noted that economic uncertainty has made saving increasingly difficult, while 17% have had to prioritise debt repayment.

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For these reasons, the research found that most rely on work bonuses or gifts from family to boost their savings pot each year. Moreover, when it comes to long-term savings such as retirement, apart from contributing to a workplace pension, 45% are not actively saving for their retirement.

In fact, the research, commissioned by NatWest, showed that 17% won't consider saving for retirement for 'at least another 10 years'.

Mo Watt, a savings expert from NatWest, highlighted that one in ten often don't know where to start, which can make saving seem like a daunting task. To help encourage young adults to develop healthier monthly saving habits they have launched a .

Olympic gold medallists Alistair and Jonny Brownlee were brought in to help kick off the challenge. Alistair shared, "Any challenge can feel overwhelming to begin with, but breaking it down into smaller steps can help it feel more achievable. Both Jonny and I have always been believers in starting small in order to work up to the big things we want to achieve."

Jonny added, "Whether you're looking to save £5k, £500, or even £50 in 2025 [...] setting yourself a target that's right for you and planning the steps to get there, that's already the first part of the challenge complete."

To aid them in achieving these goals, 70% believe a tool that enables them to monitor their progress and set savings targets would be beneficial.

Echoing the Brownlee brothers, Mo added: "Starting small today means you're already taking action to plan for your tomorrow. We encourage our customers to take a little more action with the help of our Savings Goal Tool."