Cost Of Living in United Kingdom 2024

cost of living chart - average monthly expenditure in United Kingdom

Average monthly spending for singles, couples, students, and families in United Kingdom

Whether you're living in United Kingdom or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.

Average Monthly Expenditure

Currency: GBP
240 3,100 31,000
MINIMUM AVERAGE MAXIMUM
$310 $4,000 $40,000

Monthly Expenditure ▶ Single

Currency: GBP
310 2,200 14,000
MINIMUM AVERAGE MAXIMUM
$390 $2,800 $18,000

Monthly Expenditure ▶ Couple

Currency: GBP
1,200 3,600 19,000
MINIMUM AVERAGE MAXIMUM
$1,500 $4,600 $24,000

Monthly Expenditure ▶ Family

Currency: GBP
1,700 4,800 31,000
MINIMUM AVERAGE MAXIMUM
$2,100 $6,100 $40,000

Monthly Expenditure ▶ Student

Currency: GBP
240 1,600 10,000
MINIMUM AVERAGE MAXIMUM
$310 $2,000 $13,000
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.

Singles

The average monthly expense for a single person living in United Kingdom is 2,200 GBP. Expenses can range from 310 GBP at the minimum level to 14,000 GBP at the highest end.


Couples

The average monthly spending of couples in United Kingdom is 3,600 GBP. Expenditure can range from 1,200 GBP to 19,000 GBP per month.


Families

The average cost of living for families in United Kingdom is 4,800 GBP per month. Families spend anywhere from 1,700 GBP to 31,000 GBP.


Students

The average monthly expenditure for students in United Kingdom is 1,600 GBP. Students spend from 240 GBP to 10,000 GBP per month.


Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.



Prices and cost of goods and services in United Kingdom


Chart showing the prices and cost of grocery, food, restaurant meals, market, and beverages in United Kingdom

Dining, food, and beverages costs


Fast food combo meal

3.4 GBP 6.8 GBP 11 GBP
MINIMUM AVERAGE MAXIMUM
$4.3 $8.6 $14

Restaurant meal for one

11 GBP 17 GBP 34 GBP
MINIMUM AVERAGE MAXIMUM
$14 $21 $43

Fine dining meal for one

23 GBP 34 GBP 140 GBP
MINIMUM AVERAGE MAXIMUM
$29 $43 $170

Cappuccino or latte

2.8 GBP 4.5 GBP 6.8 GBP
MINIMUM AVERAGE MAXIMUM
$3.6 $5.7 $8.6

Grocery and market costs


Milk large bottle

2.3 GBP 2.7 GBP 3.4 GBP
MINIMUM AVERAGE MAXIMUM
$2.9 $3.4 $4.3

12 eggs

1.7 GBP 2.3 GBP 3.4 GBP
MINIMUM AVERAGE MAXIMUM
$2.1 $2.9 $4.3

Fresh whole chicken

3.8 GBP 5 GBP 7 GBP
MINIMUM AVERAGE MAXIMUM
$4.9 $6.3 $8.9

Pack of beef

4.5 GBP 6.8 GBP 14 GBP
MINIMUM AVERAGE MAXIMUM
$5.7 $8.6 $17

Medium bag of rice

1.8 GBP 2.5 GBP 3.5 GBP
MINIMUM AVERAGE MAXIMUM
$2.3 $3.1 $4.5

Bag of tomatos

0.68 GBP 0.90 GBP 1.7 GBP
MINIMUM AVERAGE MAXIMUM
$0.86 $1.1 $2.1

Bag of apples

1.2 GBP 1.6 GBP 2.6 GBP
MINIMUM AVERAGE MAXIMUM
$1.5 $2 $3.3
Chart showing the prices and cost of commute, travel, and transportation in United Kingdom

Commute, travel, and transportation costs


20 minutes taxi ride

2.8 GBP 3.4 GBP 6.8 GBP
MINIMUM AVERAGE MAXIMUM
$3.6 $4.3 $8.6

Average car full tank

17 GBP 23 GBP 45 GBP
MINIMUM AVERAGE MAXIMUM
$21 $29 $57

Average car 1-day rental

17 GBP 23 GBP 34 GBP
MINIMUM AVERAGE MAXIMUM
$21 $29 $43

Average car price

8,400 GBP 17,000 GBP 23,000 GBP
MINIMUM AVERAGE MAXIMUM
$11,000 $21,000 $29,000

Bus ticket one way

0.56 GBP 0.84 GBP 1.7 GBP
MINIMUM AVERAGE MAXIMUM
$0.71 $1.1 $2.1

Car Service

23 GBP 34 GBP 68 GBP
MINIMUM AVERAGE MAXIMUM
$29 $43 $86
Chart showing the prices and cost of utility, energy, water, and gas for a family in United Kingdom

Utility cost (monthly)


Utility Bill - Individual

19 GBP 130 GBP 870 GBP
MINIMUM AVERAGE MAXIMUM
$23 $170 $1,100

Utility Bill - Couple

48 GBP 160 GBP 1,100 GBP
MINIMUM AVERAGE MAXIMUM
$61 $210 $1,300

Utility Bill - Family

84 GBP 240 GBP 1,600 GBP
MINIMUM AVERAGE MAXIMUM
$110 $310 $2,000

Internet and cable

17 GBP 34 GBP 45 GBP
MINIMUM AVERAGE MAXIMUM
$21 $43 $57

Mobile phone charges

14 GBP 23 GBP 68 GBP
MINIMUM AVERAGE MAXIMUM
$17 $29 $86

Leisure and activities costs


Movie ticket

8.4 GBP 11 GBP 17 GBP
MINIMUM AVERAGE MAXIMUM
$11 $14 $21

One month gym membership

27 GBP 34 GBP 68 GBP
MINIMUM AVERAGE MAXIMUM
$34 $43 $86
Chart showing the prices and cost of clothing and accessories in United Kingdom

Cloths and accessories costs


Pair of jeans or pants

20 GBP 28 GBP 42 GBP
MINIMUM AVERAGE MAXIMUM
$25 $36 $53

Woman dress

19 GBP 26 GBP 84 GBP
MINIMUM AVERAGE MAXIMUM
$24 $33 $110

Woman shoes

18 GBP 24 GBP 56 GBP
MINIMUM AVERAGE MAXIMUM
$23 $31 $71

Men's shoes

15 GBP 19 GBP 38 GBP
MINIMUM AVERAGE MAXIMUM
$19 $24 $48

Men suit

17 GBP 21 GBP 110 GBP
MINIMUM AVERAGE MAXIMUM
$21 $27 $140

Regular t-shirt

8.4 GBP 11 GBP 34 GBP
MINIMUM AVERAGE MAXIMUM
$11 $14 $43
Chart showing the prices and cost of housing, accommodation, and rent in United Kingdom

Housing costs / monthly rent


Studio apartment

280 GBP 420 GBP 1,100 GBP
MINIMUM AVERAGE MAXIMUM
$360 $530 $1,400

1-bedroom apartment

420 GBP 680 GBP 1,700 GBP
MINIMUM AVERAGE MAXIMUM
$530 $860 $2,100

2-bedroom apartment

560 GBP 840 GBP 2,300 GBP
MINIMUM AVERAGE MAXIMUM
$710 $1,100 $2,900

Housing costs / Buying


Studio apartment

56,000 GBP 84,000 GBP 170,000 GBP
MINIMUM AVERAGE MAXIMUM
$71,000 $110,000 $210,000

1-bedroom apartment

68,000 GBP 110,000 GBP 420,000 GBP
MINIMUM AVERAGE MAXIMUM
$86,000 $140,000 $530,000

2-bedroom apartment

110,000 GBP 340,000 GBP 680,000 GBP
MINIMUM AVERAGE MAXIMUM
$140,000 $430,000 $860,000
Chart showing the prices and cost of furniture in United Kingdom

Furniture Costs


King Size Bed

340 GBP 420 GBP 560 GBP
MINIMUM AVERAGE MAXIMUM
$430 $530 $710

Double Bed

230 GBP 340 GBP 420 GBP
MINIMUM AVERAGE MAXIMUM
$290 $430 $530

Single Bed

200 GBP 260 GBP 340 GBP
MINIMUM AVERAGE MAXIMUM
$250 $330 $430

Living Room

380 GBP 480 GBP 1,700 GBP
MINIMUM AVERAGE MAXIMUM
$480 $610 $2,100

Dining Table

170 GBP 230 GBP 420 GBP
MINIMUM AVERAGE MAXIMUM
$210 $290 $530

Sofa or Couch

230 GBP 310 GBP 680 GBP
MINIMUM AVERAGE MAXIMUM
$290 $390 $860
Chart showing the prices and cost of electronic devices and appliances in United Kingdom

Electronics and House Appliance Costs


TV Set

230 GBP 340 GBP 680 GBP
MINIMUM AVERAGE MAXIMUM
$290 $430 $860

Fridge or Freezer

200 GBP 310 GBP 420 GBP
MINIMUM AVERAGE MAXIMUM
$250 $390 $530

Washing Machine

260 GBP 380 GBP 680 GBP
MINIMUM AVERAGE MAXIMUM
$330 $480 $860

Stove or Cooker

240 GBP 310 GBP 420 GBP
MINIMUM AVERAGE MAXIMUM
$310 $390 $530

Mobile Phone

280 GBP 340 GBP 480 GBP
MINIMUM AVERAGE MAXIMUM
$360 $430 $610

Laptop or Computer

310 GBP 380 GBP 680 GBP
MINIMUM AVERAGE MAXIMUM
$390 $480 $860

Expenditure to Income Ratio in United Kingdom

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.

Cost of living and expenditure to income ratio in United Kingdom

Spending to Income Ratio

82%

73% to 92%

( expenditure / income ) x 100


Expense to income distribution levels

Spending To Income Ratio% People
< 50%7%
50% - 60%12%
60% - 70%19%
70% - 80%27%
80% - 90%14%
90% - 100%8%
100% - 110%5%
110% - 120%3%
120% - 130%2%
130% - 140%1%
> 140%1%

Interpretation and Analysis

The average spending-to-salary ratio in United Kingdom is 82% This means that on average, people spend around 82% of their income for living. According to the distribution table, 19% of the population spend approximately 60% to 70% of their income every month.


How can spending be more than income?

A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.



Individual
74%
Spending-Income-Ratio
66%
83%

Couple
78%
Spending-Income-Ratio
69%
87%

Family
86%
Spending-Income-Ratio
77%
97%
Distribution of monthly cost of living expenses in United Kingdom

How do people spend their money in United Kingdom?

We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.

The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.

Housing Expenditure28%

28% of total expenses on average (17% to 36%)

LOW$92   72 GBP
AVERAGE$1,200   940 GBP
HIGH$12,000   9,400 GBP
Per Month

People living in United Kingdom typically spend from 17% to 36% of their total monthly expenditure on housing with 28% being the average. The average spend on housing is 940 GBP with expenditure ranging from 72 GBP to 9,400 GBP. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.

Utilities, Electricity, Water, Internet, Mobile6%

6% of total expenses on average (3% to 10%)

LOW$15   12 GBP
AVERAGE$200   160 GBP
HIGH$2,000   1,600 GBP
Per Month

Utility expenditure like electricity, water, and gas in United Kingdom ranges from 3% to 10% of total expenses with 6% being the average. The average monthly cost of utilities is 160 GBP with 12 GBP and 1,600 GBP being the upper and lower limits.

Transport, Fuel, Commute9%

9% of total expenses on average (4% to 13%)

LOW$31   24 GBP
AVERAGE$400   310 GBP
HIGH$4,000   3,100 GBP
Per Month

Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 24 GBP to 3,100 GBP on commuting with 310 GBP being the norm for most people in one month. This means that money spent on transport constitutes about 9% of total spending on average but can go as low as 4% or as high as 13%.

Food and Groceries Cost26%

26% of total expenses on average (18% to 32%)

LOW$76   60 GBP
AVERAGE$990   780 GBP
HIGH$9,900   7,800 GBP
Per Month

The average outlay on groceries in a month in United Kingdom is 780 GBP. The cost of groceries can range between 60 GBP to 7,800 GBP. People spend on average about 26% on food and groceries with upper and lower bounds of 18% and 32% respectively.

Healthcare and Medical Services8%

8% of total expenses on average (3% to 11%)

LOW$21   17 GBP
AVERAGE$280   220 GBP
HIGH$2,800   2,200 GBP
Per Month

People in United Kingdom allocate 3% to 11% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 8%. The range of medical expenses range from 17 GBP to 2,200 GBP with 220 GBP being the norm.

Leisure and Shopping6%

6% of total expenses on average (3% to 10%)

LOW$12   9.7 GBP
AVERAGE$160   130 GBP
HIGH$1,600   1,300 GBP
Per Month

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 9.7 GBP to 1,300 GBP with 130 GBP being the average. Speaking of percentages, that equates to 3% to 10% of total expenses with an average of 6% for most residents.

Education and Schooling6%

6% of total expenses on average (4% to 12%)

LOW$18   14 GBP
AVERAGE$240   190 GBP
HIGH$2,400   1,900 GBP
Per Month

Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 6% of the monthly expenditure with 4% and 12% being the lower and upper bounds respectively. The average reported education cost is 190 GBP per month with 14 GBP being the minimum spent amount and 1,900 GBP being the maximum.

Other Expenses11%

11% of total expenses on average (6% to 18%)

LOW$40   31 GBP
AVERAGE$520   410 GBP
HIGH$5,200   4,100 GBP
Per Month
Percentage of people who manage to save money from their income every month in United Kingdom

How much money can you save in United Kingdom every month?

We asked thousands of people what percentage of their income can they save in a month. Below are the answers.


What percentage of people in United Kingdom manage to save money from their income every month?


Saving Money
63%
Not Saving
37%

Almost 63% of the surveyed people in United Kingdom said that they can save some money at the end of each month while 37% said that aren't saving anything.


Percentage of people saving money by population group in United Kingdom

GroupSaversNon Savers
Singles71%29%
Couples66%34%
Families61%39%

Savings-to-Income Ratio

The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.


Savings to income ratio in United Kingdom

Saving to Income Ratio

12% 21% of income 32%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

96 GBP
$120
1,200 GBP
$1,600
12,000 GBP
$16,000
MINIMUM AVERAGE MAXIMUM

For most people, 12% to 32% of their monthly income is what they can allocate to their savings, with 21% being the average. The amount of money that people can save is approximately 1,200 GBP on average with savings ranging from 96 GBP to 12,000 GBP.

71% of surveyed singles reported some of their income going to savings while 66% of couples said the same. 61% of families confirmed their ability to save money.


How much money do people actually save in United Kingdom?

The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.


Singles

Saving to Income Ratio

15% 25% of income 34%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

96 GBP
$120
870 GBP
$1,100
5,800 GBP
$7,300
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for singles

Saving To Income Ratio% Singles
0% - 10%28%
10% - 20%22%
20% - 30%16%
30% - 40%17%
40% - 50%13%
> 50%4%

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 15% to 34% of their monthly income to savings, with 25% being the average for most singles. The average amount of money that singles are able to save is 870 GBP with 96 GBP and 5,800 GBP being the minimum and maximum respectively.


Couples

Saving to Income Ratio

13% 23% of income 33%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

480 GBP
$610
1,400 GBP
$1,800
7,700 GBP
$9,700
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for couples

Saving To Income Ratio% Couples
0% - 10%32%
10% - 20%24%
20% - 30%19%
30% - 40%12%
40% - 50%10%
> 50%3%

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 13% to 33% of their monthly income, with 23% being the average for most couples. The average amount of money that couples can save is 1,400 GBP with 480 GBP and 7,700 GBP being the minimum and maximum respectively.


Families

Saving to Income Ratio

11% 19% of income 30%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

670 GBP
$850
1,900 GBP
$2,400
12,000 GBP
$16,000
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for families

Saving To Income Ratio% Families
0% - 10%35%
10% - 20%27%
20% - 30%20%
30% - 40%9%
40% - 50%7%
> 50%2%

Interpretation and Analysis

Families in United Kingdom can save anywhere between 11% to 30% of their monthly income, with 19% being the average for most families. The average amount of money that families can put aside is 1,900 GBP with 670 GBP and 12,000 GBP being the minimum and maximum respectively.

Reasons that make it difficult for people to save money in United Kingdom

Saving Challenges in United Kingdom

Reasons that make it difficult for people to save money

We wanted to understand what is stopping people from maximizing their savings in United Kingdom. Listed below are the answers given by the survey participants.


Reason% People
Low Income7%
High Expenses10%
Debt and Loans20%
Lack of Budgeting Skills10%
Impulsive Spending9%
Financial Emergencies6%
Living the moment7%
Will do it later16%
Inflation10%
Social Pressure4%
Market Instability3%

Around 7% of the people said that their salary is too low to accommodate a portion for savings while 10% said that the high cost of living leaves little room for savings. 20% of the residents said that they are burdened with debt and find it challenging to save money. 10% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 9% blamed impulsive spending as the reason for saving inability. Around 6% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 7% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 16% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 10% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 4% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.

Where do people choose to put their savings in United Kingdom

Typical saving choices for people in United Kingdom

Where do people choose to put their savings?


Saving Type% People
Emergency Funds10%
Gold9%
Savings Accounts18%
Retirement Accounts12%
Cash Savings14%
Real Estate10%
Investment6%
Stocks7%
Bonds7%
Mutual Funds3%
Certificates of Deposit4%
A typical and healthy budgeting structure. The 50-30-20 rule

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

  • 50% for needs and financial obligations

    This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

  • 30% for wants and discretionary spending

    This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

  • 20% for savings and emergency fund

    This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.

Income and cost of living compatibility. Is it affordable or economical to live in United Kingdom

Affordable living in United Kingdom

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in United Kingdom?


Yes
73%
No
27%

Around 73% of surveyed residents think that living in United Kingdom is affordable with proper budgeting while 27% reported that it is just too expensive and not affordable even with frugality and thriftness.

How easily is cost-cutting. Are there plenty of low-cost options in United Kingdom

Low-cost alternatives in United Kingdom

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options59%

Few low-cost options41%


Based on the survey, 59% of the people living in United Kingdom have no problem finding low-cost alternatives to support a frugal lifestyle while 41% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of United Kingdom whether they have an emergency fund and the answers were as follows.

Yes69%

No31%


Based on the survey, 31% of the people living in United Kingdom said that they don't have an emergency fund while 69% said that they do.

Financial literacy and difficulty in budgeting and financial planning in United Kingdom

Financial Literacy in United Kingdom

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy68%


We asked residents of United Kingdom whether they acquired any adequate personal financial training in their lives. Approximately 32% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 68% said that they know about the general principles of personal finance from sources other than their own experience.


Difficulty in Budgeting and Financial Planning

We wanted to understand whether residents of United Kingdom have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 34% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 66% said that they have everything under control.

Struggles with finance34%

Easily manages finances66%

Financial goals and targets of people living in United Kingdom

Financial goals of people in United Kingdom

In an attempt to understand the economic situation in United Kingdom, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.


Financial Goal% People
Emergency Fund6%
Debt Reduction30%
Retirement Savings7%
Education Funding9%
Homeownership16%
Investing9%
Travel or Lifestyle12%
Healthcare Expenses7%
Financial Independence10%

Around 6% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 30% said their number one priority is to pay off high-interest debt or loans and improve credit. 7% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 9% reported that their priority is saving for the tuition fees and education costs of their children while 16% choose to buy a home or pay off existing mortgage before other things. 9% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 12% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 7% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Retirement, pension plans, and life after work in United Kingdom

What does the retirement lifestyle look like in United Kingdom and how much retirement savings are required?

Retirement age

The retirement age for most employees in United Kingdom is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.

Retirement planning and savings

There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.


The typical saved amount of money you should have at every age as multiples of monthly salary:
AgeAmount
255x monthly salary at age 25
3010x monthly salary at age 30
3515x monthly salary at age 35
4025x monthly salary at age 40
4532x monthly salary at age 45
5048x monthly salary at age 50
5556x monthly salary at age 55
6064x monthly salary at age 60
6578x monthly salary at age 65

The typical average saved amount of money you should have at every age in United Kingdom:
AgeAmount
258,800 GBP
3018,000 GBP
3531,000 GBP
4044,000 GBP
4566,000 GBP
5092,000 GBP
55110,000 GBP
60140,000 GBP
65160,000 GBP

Retirement Income Distribution

We asked residents of United Kingdom about their retirement income sources and below are the results.

Source% People
Pensions14%
Savings21%
Investments14%
Social Security9%
Annuities9%
Part-time Job8%
Real Estate16%
Dividends and Interest9%

Retirement Monthly Expenses in United Kingdom

170 GBP
$220
1,600 GBP
$2,000
10,000 GBP
$13,000
MINIMUM AVERAGE MAXIMUM
Chart showing the percentage of people who are in debt in United Kingdom

Debt, loans, and mortgages in United Kingdom


Percentage of people who are in debt


In Debt
30%
Debt Free
70%

According to the survey, 30% of the people in United Kingdom have some kind of debt, loan, mortgage, or credit card payments while 70% reported that they don't have financial obligations to banks.


Chart showing debt-to-income ratio in United Kingdom

Debt-to-income ratio in United Kingdom

Debt to income ratio

27%

18% to 37%

( monthly debt payment / monthly income ) x 100

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 27% of the people's monthly income in United Kingdom goes to debt settlement.


Debt levels

Monthly debt settlement payment as percentage of monthly income

Debt-to-income ratio% People
> 60%2%
50% - 60%9%
40% - 50%10%
30% - 40%12%
20% - 30%17%
10% - 20%21%
0% - 10%28%

According to our data, 2% of the debtors in United Kingdom pay 60%+ of their income as debt settlement while 9% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 10% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 12% dedicated 30% to 40% of income for same. Things are looking brighter for 17% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.


Distribution by type of debt in United Kingdom

Debt% People
Real Estate Mortgage15%
Auto Loan25%
Student Loan3%
Credit Card23%
Personal Loan34%

15% of debtors in United Kingdom confirm that real estate mortgages constitutes the main part of their outstanding debt while 23% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 25% of people and personal loans rose at 34%. Lastly, student loans are the main source of debt for 3% of debtors in United Kingdom.


About credit score and debt management

Managing debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.


Loan Affordability Index in United Kingdom

Besides measuring the loan-to-income ratio, we asked residents of United Kingdom how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Frequency% People
Never57%
Once a year21%
Twice a year11%
Three times a year8%
Four times a year3%
Housing and accommodation affordability, property price to income ratio, rent to income ratio, and housing affordability index chart in United Kingdom

Housing costs, accommodation, and housing affordability in United Kingdom

Rental costs and house/apartment prices can vary drastically between different areas and locations.


Rent Cost in United Kingdom

Monthly Rent Prices

Studio apartment monthly rent cost

280 GBP 420 GBP 1,100 GBP
MINIMUM AVERAGE MAXIMUM
$360 $530 $1,400

1-bedroom apartment monthly rent cost

420 GBP 680 GBP 1,700 GBP
MINIMUM AVERAGE MAXIMUM
$530 $860 $2,100

2-bedroom apartment monthly rent cost

560 GBP 840 GBP 2,300 GBP
MINIMUM AVERAGE MAXIMUM
$710 $1,100 $2,900

3-bedroom apartment monthly rent cost

680 GBP 1,100 GBP 3,100 GBP
MINIMUM AVERAGE MAXIMUM
$860 $1,400 $3,900

Furnished apartment monthly rent cost

1,400 GBP 3,400 GBP 6,800 GBP
MINIMUM AVERAGE MAXIMUM
$1,700 $4,300 $8,600

Townhouse monthly rent cost

1,100 GBP 1,700 GBP 4,800 GBP
MINIMUM AVERAGE MAXIMUM
$1,400 $2,100 $6,100

House monthly rent cost

1,400 GBP 3,400 GBP 6,800 GBP
MINIMUM AVERAGE MAXIMUM
$1,700 $4,300 $8,600

Villa monthly rent cost

1,700 GBP 4,200 GBP 6,800 GBP
MINIMUM AVERAGE MAXIMUM
$2,100 $5,300 $8,600

The monthly rental cost of a studio apartment in United Kingdom ranges between 280 GBP and 1,100 GBP, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 420 GBP to 1,700 GBP. Two-bedroom rentals rate ranges between 560 GBP and 2,300 GBP per month. The monthly rental for a three-bedroom apartment ranges from 680 GBP to 3,100 GBP. The average rent of a townhouse in United Kingdom is around 1,700 GBP while house rental costs can be as high as 3,400 GBP per month. Finally, if you want to rent a villa, expect to pay anywhere from 1,700 GBP to 6,800 GBP per month.



Apartment and house prices in United Kingdom

Cost of buying a property

Studio apartment price

56,000 GBP 84,000 GBP 170,000 GBP
MINIMUM AVERAGE MAXIMUM
$71,000 $110,000 $210,000

1-bedroom apartment price

68,000 GBP 110,000 GBP 420,000 GBP
MINIMUM AVERAGE MAXIMUM
$86,000 $140,000 $530,000

2-bedroom apartment price

110,000 GBP 340,000 GBP 680,000 GBP
MINIMUM AVERAGE MAXIMUM
$140,000 $430,000 $860,000

3-bedroom apartment price

380,000 GBP 560,000 GBP 1.7M GBP
MINIMUM AVERAGE MAXIMUM
$480,000 $710,000 $2.1M

Townhouse price

480,000 GBP 1.1M GBP 4.2M GBP
MINIMUM AVERAGE MAXIMUM
$610,000 $1.4M $5.3M

House price

560,000 GBP 3.4M GBP 4.8M GBP
MINIMUM AVERAGE MAXIMUM
$710,000 $4.3M $6.1M

Villa price

680,000 GBP 3.8M GBP 5.6M GBP
MINIMUM AVERAGE MAXIMUM
$860,000 $4.8M $7.1M

The average price of a studio apartment in United Kingdom can range from 56,000 GBP to 170,000 GBP depending on location. One bedroom cost can be anywhere from 68,000 GBP to 420,000 GBP. A villa can cost you 3.8M GBP on average with prices ranging from 680,000 GBP to 5.6M GBP.


If you're leasing or purchasing, housing costs in United Kingdom will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.

House / apartment prices to income ratio


Property price to income ratio

( average property price / average monthly income ) x 100


43 x128 monthly income 217
MINIMUM AVERAGE MAXIMUM

Property prices in United Kingdom can be x128 to x217 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x128 multiples of the average monthly salary in United Kingdom.



Rent to income ratio


Rent to income ratio

( monthly rental / monthly income ) x 100


23% 33% of income 43%
MINIMUM AVERAGE MAXIMUM

The average rent-to-income ratio in United Kingdom is around 33%. This means that people pay 33% of their income for rent. Those figures can range from 23% to 43% depending on the salary, location, and type of property.


The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Housing Affordability Index
31%

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.


FROM
2.3%
AVERAGE
3.3%
TO
4.3%

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.


4.8 GBP 63 GBP 630 GBP
MINIMUM AVERAGE MAXIMUM

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in United Kingdom

Utilities expenditure can vary slightly between different areas and locations.


Energy, electricity, water, gas, internet, and mobile cost in United Kingdom

Utility Bill Cost / Electricity + Water + Gas / Individual

19 GBP 130 GBP 870 GBP
MINIMUM AVERAGE MAXIMUM
$23 $170 $1,100

Utility Bill Cost / Electricity + Water + Gas / Couple

48 GBP 160 GBP 1,100 GBP
MINIMUM AVERAGE MAXIMUM
$61 $210 $1,300

Utility Bill Cost / Electricity + Water + Gas / Family

84 GBP 240 GBP 1,600 GBP
MINIMUM AVERAGE MAXIMUM
$110 $310 $2,000

Internet and cable cost

17 GBP 34 GBP 45 GBP
MINIMUM AVERAGE MAXIMUM
$21 $43 $57

Mobile phone bill and charges

14 GBP 23 GBP 68 GBP
MINIMUM AVERAGE MAXIMUM
$17 $29 $86

Because most utility bills club electricity, water, and gas costs in one bill, we can't provide a breakup for each type of utility and will display electricity, gas, and water as single cost.


The average monthly expenditure for individuals on electricty, water, and gas in United Kingdom ranges between 19 GBP and 870 GBP with average being 130 GBP, meanwhile the expenditure of couples is slightly higher at 160 GBP with 48 GBP and 1,100 GBP being the upper and lower limits respectively. As expected, the energy and water consumption of families is the highest among the three groups with an average of 240 GBP. The cost of internet and WiFi is unchanged among the three groups and ranges from 17 GBP to 45 GBP with 34 GBP being the average internet bill. Finally, the average monthly mobile charges is around 23 GBP but can range between 14 GBP and 68 GBP depending on consumption. Mobile charges include both calling minutes as well as data packages.


Energy / Utility expense to income ratio


( monthly utility expenses / monthly income ) x 100


2% 5% of income 9%
MINIMUM AVERAGE MAXIMUM

The average utility-to-income ratio in United Kingdom is around 5%. This means that people pay 5% of their income for energy, water, internet, and mobile charges. Those figures can range from 2% to 9% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in United Kingdom

Grocery / Food expenditure and prices can vary drastically between different areas and locations.


Prices and cost of goods and services in United Kingdom

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

3.4 GBP 6.8 GBP 11 GBP
MINIMUM AVERAGE MAXIMUM
$4.3 $8.6 $14

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in United Kingdom is approximatly 6.8 GBP with meal cost ranging from 3.4 GBP to 11 GBP. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

11 GBP 17 GBP 34 GBP
MINIMUM AVERAGE MAXIMUM
$14 $21 $43

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 11 GBP and 34 GBP with 17 GBP being the average price of a plate for one person at a regular restaurant in United Kingdom.

Fine dining meal for one price

23 GBP 34 GBP 140 GBP
MINIMUM AVERAGE MAXIMUM
$29 $43 $170

The price range of a meal at fine-dining restaurant is 23 GBP to 140 GBP with the average cost being 34 GBP for one person. This is what you would expect to pay a top-tier diner in United Kingdom.

Beverage prices, cappuccino, latte etc..

2.8 GBP 4.5 GBP 6.8 GBP
MINIMUM AVERAGE MAXIMUM
$3.6 $5.7 $8.6

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in United Kingdom is around 4.5 GBP. Price ranges between 2.8 GBP and 6.8 GBP depending on the type of beverage, the size, and optional add-ons.



Grocery and market costs

Large bottle of milk price

2.3 GBP 2.7 GBP 3.4 GBP
MINIMUM AVERAGE MAXIMUM
$2.9 $3.4 $4.3

The average price of a large bottle of milk in United Kingdom is 2.7 GBP. The maximum what you would pay for milk is 3.4 GBP and the minimum being 2.3 GBP depending on the brand of milk and other properties.

12 eggs price

1.7 GBP 2.3 GBP 3.4 GBP
MINIMUM AVERAGE MAXIMUM
$2.1 $2.9 $4.3

A dozen eggs costs around 2.3 GBP on average with 1.7 GBP and 3.4 GBP being the lower and upper limits respectively.

Fresh whole chicken price

3.8 GBP 5 GBP 7 GBP
MINIMUM AVERAGE MAXIMUM
$4.9 $6.3 $8.9

The price range of a fresh whole chicken in United Kingdom is between 3.8 GBP and 7 GBP depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 5 GBP.

Pack of beef price

4.5 GBP 6.8 GBP 14 GBP
MINIMUM AVERAGE MAXIMUM
$5.7 $8.6 $17

The price of a regular pack of beef or meat is around 6.8 GBP. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

1.8 GBP 2.5 GBP 3.5 GBP
MINIMUM AVERAGE MAXIMUM
$2.3 $3.1 $4.5

A bag of rice in United Kingdom costs around 2.5 GBP on average with prices rangeing between 1.8 GBP and 3.5 GBP depending on the brand and quality.

Bag of tomatos price

0.68 GBP 0.90 GBP 1.7 GBP
MINIMUM AVERAGE MAXIMUM
$0.86 $1.1 $2.1

A bag of tomatoes costs anywhere from 0.68 GBP to 1.7 GBP. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

1.2 GBP 1.6 GBP 2.6 GBP
MINIMUM AVERAGE MAXIMUM
$1.5 $2 $3.3

A bag of apples costs 1.6 GBP on average. A bag of apples denotes 1Kg or 1lb depending on location.


Grocery and food expenditure to income ratio


( monthly grocery expenses / monthly income ) x 100


17% 25% of income 31%
MINIMUM AVERAGE MAXIMUM

The average grocery-to-income ratio in United Kingdom is around 25%. This means that people spend 25% of their income on grocery and basic household items. The expenditure can range from 17% to 31% depending on salary and location.


Expenditure on food and grocery for every population group

A single person living alone spends approximately 350 GBP per month on grocery and food with expenditure fluctuating between 49 GBP and 2,300 GBP depending on location and the type of person. The average cost of food and groceries for a couple is around 510 GBP per month. That number can be get as low as 170 GBP or a high as 2,700 GBP. Families' spending on grocery ranges from 300 GBP to 5,600 GBP with the location, income, and size of the family being the most determinite factors.


Single
Spending habits, consumption analysis, and expenditure patterns for a single person living in United Kingdom

Housing cost for a single person34%

34% of total expenses on average (22% to 46%)

LOW$140   110 GBP
AVERAGE$990   780 GBP
HIGH$6,600   5,200 GBP
Per Month

Utilities, Electricity, Water, Internet, Mobile7%

7% of total expenses on average (3% to 12%)

LOW$23   19 GBP
AVERAGE$170   130 GBP
HIGH$1,100   870 GBP
Per Month

Transport and Fuel Cost7%

7% of total expenses on average (5% to 13%)

LOW$31   25 GBP
AVERAGE$220   170 GBP
HIGH$1,500   1,200 GBP
Per Month

Food and Groceries Cost17%

17% of total expenses on average (11% to 22%)

LOW$63   49 GBP
AVERAGE$440   350 GBP
HIGH$2,900   2,300 GBP
Per Month

Healthcare Cost10%

10% of total expenses on average (4% to 14%)

LOW$35   28 GBP
AVERAGE$250   200 GBP
HIGH$1,700   1,300 GBP
Per Month

Leisure and Shopping Expenditure4%

4% of total expenses on average (3% to 7%)

LOW$20   15 GBP
AVERAGE$140   110 GBP
HIGH$920   720 GBP
Per Month

Education Cost2%

2% of total expenses on average (1% to 4%)

LOW$7.8   6.2 GBP
AVERAGE$55   43 GBP
HIGH$370   290 GBP
Per Month

Other Expenses19%

19% of total expenses on average (11% to 23%)

LOW$70   56 GBP
AVERAGE$500   390 GBP
HIGH$3,300   2,600 GBP
Per Month


Couple
Average monthly living expenditure breaks and spending patterns for couples in United Kingdom

Housing cost for a couple31%

31% of total expenses on average (24% to 41%)

LOW$520   410 GBP
AVERAGE$1,600   1,200 GBP
HIGH$8,300   6,600 GBP
Per Month

Utilities, Electricity, Water, Internet, Mobile6%

6% of total expenses on average (4% to 10%)

LOW$61   48 GBP
AVERAGE$210   160 GBP
HIGH$1,300   1,100 GBP
Per Month

Transport and Fuel Cost11%

11% of total expenses on average (5% to 16%)

LOW$180   140 GBP
AVERAGE$550   430 GBP
HIGH$2,900   2,300 GBP
Per Month

Food and Groceries Cost15%

15% of total expenses on average (10% to 20%)

LOW$210   170 GBP
AVERAGE$640   510 GBP
HIGH$3,400   2,700 GBP
Per Month

Healthcare Cost12%

12% of total expenses on average (6% to 16%)

LOW$170   130 GBP
AVERAGE$500   400 GBP
HIGH$2,700   2,100 GBP
Per Month

Leisure and Shopping Cost5%

5% of total expenses on average (2% to 8%)

LOW$92   72 GBP
AVERAGE$280   220 GBP
HIGH$1,500   1,200 GBP
Per Month

Education Cost2%

2% of total expenses on average (1% to 4%)

LOW$31   24 GBP
AVERAGE$92   72 GBP
HIGH$490   390 GBP
Per Month

Other Expenses18%

18% of total expenses on average (12% to 24%)

LOW$260   210 GBP
AVERAGE$780   620 GBP
HIGH$4,200   3,300 GBP
Per Month


Family
Average monthly expenses and break out of spending for families living in United Kingdom

Housing cost for a family30%

30% of total expenses on average (25% to 40%)

LOW$690   540 GBP
AVERAGE$2,000   1,500 GBP
HIGH$13,000   10,000 GBP
Per Month

Utilities, Electricity, Water, Internet, Mobile4%

4% of total expenses on average (2% to 7%)

LOW$110   84 GBP
AVERAGE$310   240 GBP
HIGH$2,000   1,600 GBP
Per Month

Transport and Fuel Expenses7%

7% of total expenses on average (5% to 9%)

LOW$210   170 GBP
AVERAGE$610   480 GBP
HIGH$4,000   3,100 GBP
Per Month

Food and Groceries Cost19%

19% of total expenses on average (12% to 25%)

LOW$390   300 GBP
AVERAGE$1,100   870 GBP
HIGH$7,200   5,600 GBP
Per Month

Healthcare Expenses9%

9% of total expenses on average (5% to 14%)

LOW$190   150 GBP
AVERAGE$610   480 GBP
HIGH$3,200   2,500 GBP
Per Month

Leisure and Shopping Cost4%

4% of total expenses on average (2% to 8%)

LOW$110   84 GBP
AVERAGE$310   240 GBP
HIGH$2,000   1,600 GBP
Per Month

Education Cost14%

14% of total expenses on average (7% to 22%)

LOW$300   240 GBP
AVERAGE$860   680 GBP
HIGH$5,600   4,400 GBP
Per Month

Other Expenses13%

13% of total expenses on average (6% to 18%)

LOW$170   140 GBP
AVERAGE$490   390 GBP
HIGH$3,200   2,500 GBP
Per Month


Student
Cost of living and expenses break down for students living in United Kingdom

Housing costs for Student22%

22% of total expenses on average (17% to 28%)

LOW$73   58 GBP
AVERAGE$480   380 GBP
HIGH$3,200   2,500 GBP
Per Month

Utilities, Electricity, Water, Internet, and Mobile Expenses5%

5% of total expenses on average (3% to 9%)

LOW$12   9.7 GBP
AVERAGE$79   63 GBP
HIGH$530   420 GBP
Per Month

Transport and Fuel Cost6%

6% of total expenses on average (5% to 12%)

LOW$21   17 GBP
AVERAGE$140   110 GBP
HIGH$930   730 GBP
Per Month

Food and Groceries Expenditure21%

21% of total expenses on average (15% to 25%)

LOW$61   48 GBP
AVERAGE$400   310 GBP
HIGH$2,600   2,100 GBP
Per Month

Healthcare Cost7%

7% of total expenses on average (4% to 10%)

LOW$18   14 GBP
AVERAGE$120   94 GBP
HIGH$790   630 GBP
Per Month

Leisure and Shopping Cost4%

4% of total expenses on average (3% to 8%)

LOW$15   12 GBP
AVERAGE$99   78 GBP
HIGH$660   520 GBP
Per Month

Education Cost19%

19% of total expenses on average (12% to 24%)

LOW$58   46 GBP
AVERAGE$380   300 GBP
HIGH$2,500   2,000 GBP
Per Month

Other Expenses16%

16% of total expenses on average (10% to 22%)

LOW$46   36 GBP
AVERAGE$300   230 GBP
HIGH$2,000   1,600 GBP
Per Month
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