Are Your Savings Inflation-Proof? What Families Should Be Doing in 2026

Inflation is causing problems for UK families, making it harder to keep savings safe. As the cost of living goes high, money doesn’t stretch as far as it used to, leaving many feeling pressured.

Recent studies from the Office for National Statistics found that household savings are declining as inflation continues to increase. As money loses its value over time, families need to plan. The pounds in your savings account may not buy as much in the future, so it’s essential to make your money work harder.

How can families protect their savings from rising costs? What can you do to make sure your hard-earned savings keep their value?

In this guide, we will cover practical steps families can take to protect their savings from inflation, including more effective budgeting and investment strategies.

How Inflation Affects Savings

Inflation is the rate at which the prices of goods and services rise, causing money to lose its purchasing power. When inflation goes up, you can buy fewer items with the same amount of money. This is a big issue for families because it reduces the value of their savings and investments.

According to Finder, the UK’s inflation rate was 3.4%, as measured by the Consumer Price Index (CPI) during May 2025. Currently, the base rate is 4%. This means that savings are not expanding fast enough to keep up with inflation. This suggests that the situation makes it challenging for families to preserve their wealth.

In 2026, inflation is expected to remain a problem and will likely exceed wage increases in many jobs. With rising costs for essentials like groceries and energy bills, families are finding their savings to be inadequate. This makes it more critical for families to take steps to protect their finances.

Practical Steps to Protect Family Savings

Now that we’ve discussed how inflation affects savings, let’s look at how you can protect your money. Although inflation may seem out of your control, families can take several steps to protect their savings in the long run. Here are the steps:

Step 1: Make the Most of Government Resources

Many families seek help from government-supported resources, such as MoneyHelper and Citizens Advice. These services provide free advice on:

• Budgeting
• ISAs
• Pensions

Whether you’re new to saving or looking to change your current plans, these resources can help you make informed decisions without incurring costly advice fees.

Step 2: Utilise Savings Tools and Calculators

Many online tools like NatWest’s inflation calculator help families monitor how inflation affects their savings. These calculators illustrate how inflation can erode the purchasing power of your money over time. They also help you figure out how much extra you need to save to maintain your lifestyle. Many of these resources are free to use and easy to navigate, making them a great starting point for families looking to change their saving strategies.

Step 3: Explore Various Investment Options

A good way to protect your savings from inflation is to use low-risk investment options, such as Individual Savings Accounts (ISAs). ISAs allow you to save and invest without paying taxes. Some types, like Stocks and Shares ISAs, can grow faster than inflation. By using these tax-free savings accounts, families can keep their finances from losing value as time passes.

In the 2023-24 tax year, UK households saved a record £103 billion in ISAs. Most of this came from cash ISAs, which saw contributions rise by 67% to £69.5 billion. This shows that more people are interested in safe accounts that earn interest, thanks to higher rates set by the Bank of England.

Step 4: Consult a Professional for Long-Term Planning

While government resources and online tools can be very helpful, some families require personalised guidance to ensure they are making informed decisions. 

If you want to go a step further and get guidance that’s tailored to your family’s situation, you can turn to firms like PMW, a UK-based wealth management company, which helps households structure savings, pensions, and inheritance planning with long-term security in mind.

To protect your savings from inflation, you need more than quick fixes; you require a long-term plan. Financial advisors guide you through key decisions like how to diversify your savings, which investments to consider, and how to plan for retirement and your estate. 

Conclusion

Inflation is likely to persist as a problem in 2026, making it essential for families to take steps now to protect their savings. You can use free government resources, online tools, or advice from financial experts. Several options are available to help you manage rising costs.

The key is to act early. Make informed decisions to preserve your savings’ value over time. By taking these steps today, you can secure your financial future and ensure your family’s well-being, no matter what challenges inflation brings.