Money Advice by Age UK 2026 — What to Prioritise Every Decade

Money Advice for 23 Year Olds UK — Building Career Momentum

Financial guide for 23 year olds UK. Early career salary, pension growth, saving acceleration, first investments, and laying foundations for wealth.

If you want the full age-based planning framework and adjacent decade routes, use the Money by Age Hub as your central navigation page.

At 23, you’re building career momentum. Whether you’ve been working a year or just finished postgraduate study, this is when your financial habits really start to matter. Money decisions now have 44 years to compound.

Your Position at 23

SituationFocus
1 year post-graduateSalary increase potential, save first raise
Just finished postgradStarting career, money basics
Non-graduate workingPotentially ahead on experience
Entry-levelBuilding skills and income

Salary at 23

LevelTypical Range
Entry-level£22,000-26,000
Graduate role (1 year)£26,000-32,000
Tech/Finance£30,000-45,000
Public sector£24,000-29,000

What You Take Home

Gross SalaryApprox Net Monthly
£25,000£1,750
£28,000£1,925
£32,000£2,150
£36,000£2,400

Savings Priorities at 23

PriorityTarget
1. Emergency fund3 months expenses
2. Pension enrolledNot opted out
3. First investmentsStarted (any amount)
4. House deposit (if planning)LISA opened

Emergency Fund Status

Have NowNext Step
£0-500Build to £1,000
£1,000-2,000Build to 2 months
£2,000-4,000Build to 3 months
3+ monthsStart investing

Pension at 23

Where You Should Be

Years WorkingExpected Pot
1£1,000-3,000
2£2,000-6,000

Why It Matters

Start at 23£200/month = at 67
You£470,000
Someone starting at 30£300,000
Difference£170,000

Investing at 23

When to Start

PrerequisiteStatus
Emergency fund (1-3 months)
High-interest debt cleared
Pension enrolled
Can commit 5+ years

If all checked: start investing.

How to Start

StepAction
1Open Stocks & Shares ISA (Vanguard, InvestEngine)
2Choose global index fund
3Set up £25-100/month Direct Debit
4Forget about it for years

House Deposit Strategy

Timeline

Most 23-year-olds are 5-8 years from buying.

ActionNow
Open Lifetime ISA25% bonus on £4,000/year
Start savingAny amount monthly
Track housing marketWhere you want to live
Build creditImportant for mortgage

LISA at 23

DetailInformation
Maximum per year£4,000
Government bonus25% (£1,000)
Property price limit£450,000
Withdrawal penalty25% (lose bonus + 6.25%)
Must be open 12 monthsBefore buying

Starting at 23 gives you time to build a substantial deposit.

Career Strategy

This Year

FocusImpact
Skill buildingFuture earnings
Internal movesExperience breadth
PerformancePromotion chances
NetworkingOpportunities

Salary Growth

MethodTypical Increase
Annual review3-5%
Internal promotion10-15%
Job change15-30%
Counter-offer (risky)10-20%

Common 23-Year-Old Mistakes

MistakeBetter Choice
Spending raisesSave at least 50% of increases
No emergency fundBuild before anything else
Ignoring pensionYou’re leaving money on table
Waiting to investEven £25/month matters at 23
Expensive car/flatLive below means
No career strategyYou’re building for 40+ years

The 23 Checklist

By End of 23Target
Emergency fund2-3 months
Pension enrolledYes, don’t opt out
Credit score buildingElectoral roll, credit card
ISA startedAny amount
LISA for house (if planning)Opened
Budget operatingYes
Career planNext 2-3 years

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Sources

  1. ONS — Earnings statistics
  2. MoneyHelper