The number of regular UK savers has risen 5.5 per cent to 58 per cent in the last three months according to the latest Standard Life savings and investment index.
The quarterly survey for October also revealed that retirement had overtaken holidays as the single biggest reason to save for the first time since the survey began in July 2005.
It showed a 6 per cent rise since July, with holidays falling by 6 per cent over the same period.
Christmas was cited by 29 per cent as their biggest saving focus, a rise of 9 per cent since July.
Standard Life Assurance chief executive Trevor Matthews said: “It is encouraging that more people are saving and, of those who are, more are saving for their retirement.”
But he added: “It is worrying that only 33 per cent of those questioned are satisfied with the level of their retirement planning.”