Saving little and often and keeping focused on longer-term financial goals can be key to growing a pot of money over a lifetime, according to a banking expert.
Some people may have seen their financial goals, such as investments or retirement pots, pushed off course in recent weeks, following market volatility after US President Donald Trump’s unveiling of tariffs.
But time spent in the market can help to smooth out swings over the longer term.
Previous research by HSBC UK Premier in February as part of its Your Money’s Worth: Defining Wealth In 2025 report found that, even before recent global market events, only a fifth (21%) of people felt they were on track to reach their financial goals.
The YouGov research also found four-fifths (81%) of people are working towards at least one financial goal.
Getting on the property ladder or paying off a mortgage were the most popular goals, followed by upgrading a home, achieving a more comfortable retirement, more frequent holidays, growing a rainy day fund and getting a better-paid job.
There was also some evidence of “wealth” being redefined by younger generations, with those aged 35 and under being more likely to define it in terms of wellbeing, for example having the ability to buy organic food, supplements or private healthcare, according to the survey of 2,000 people across the UK.
Xian Chan, head of Premier Wealth at HSBC UK, has given some tips for steps to potentially help people at different life stages to grow their financial resilience and build funds over the longer term:
– 20s: Saving a little and often can help build good money habits
Mr Chan said: “Your 20s is a decade of change, and usually not one that starts from a place of affluence as you’re making your first steps towards building your financial future.
“Now is a great time to kick-start a ‘little and often’ saving habit, even if you can only initially afford small amounts.”
He suggested building a financial buffer for emergencies, adding: “People of all ages need to have a buffer for emergencies and to build financial resilience early, so it’s important to prioritise that as a first financial goal.
“The general guidance is that people should aim to save three to six months of living costs, and this needs to be held in an account that’s easy to access.”
People could also start setting short, medium and long-term goals, he suggested, with an understanding that some goalposts will move throughout adult life.
He also said the decade can be a “great time to start investing for your long-term future, as the longer you invest for, the higher your chance of returns”.
– 30s: Stay focused on longer-term goals
Some people may find their financial commitments increase in their 30s, if they get a mortgage or perhaps start a family, Mr Chan said.
He added: “It’s important to be future-focused and review longer-term goals regularly to stay on track, particularly if your income is stretched by increased monthly costs – so you can get on the front foot with a savings plan.”
Mr Chan said: “Paying into a range of different investments, tailored to your goals and your risk appetite, is a good strategy to ensure you’re not relying on one type too heavily. Meanwhile, cash savings are good for short-term goals, but it’s important to be mindful that inflation can erode those.”
Mr Chan said some people might need more money for a comfortable retirement than they think, “and your 30s is definitely the time to start really thinking about the quality of life you aspire to and how to achieve it”.
Online retirement calculators can help people to start planning.
– 40s: Be mindful of “lifestyle inflation”
Mr Chan said: “Our HSBC UK report shows that the more we earn, the more we have a tendency to underestimate our wealth relative to others, as increased wealth is counteracted by lifestyle inflation.
“Your 40s is a good time to really look at your earnings versus expenditure and consider if the latter is cancelling out the former.
“If the answer is yes, it might be time to have an in-depth spending review and see if you need to make some changes.”
Some people may also benefit from financial advice at a time when they are also “spinning lots of plates financially”, he said.
Mr Chan added: “Even if financial advice isn’t right for you, your bank will be able to point you towards educational resources to help you make informed choices.”
He said that the decade is also a time when people often consider stepping up their retirement contributions “so you can maximise compounded interest for as long as possible before you retire”.
– 50s and beyond: Consider reviewing investments.
Mr Chan said: “At this point you might be an experienced investor, but it’s important to review your investments and question whether they still align with your financial goals and your risk appetite.”
He said that investing any annual bonus or spare income can be “a great habit to implement”.
Everyone has different money aspirations and the most suitable financial options for someone will depend on individual needs and circumstances.
People may want to consider getting guidance from the Government-backed Pension Wise Service or taking financial advice, when weighing up what is right for them.
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