Younger generations urged not to gamble on their financial future

beboldSavings

A generation of Shropshire people could be placing their financial future in jeopardy with a carefree attitude to spending.

As the political parties gear up for the General Election and announce a raft of measures which will affect family finances, financial expert Steve Graves says that regardless of manifesto pledges – younger people need to start saving sooner.

Steve, from Newport based Robert Nicholas Financial Advisers, says claims that more than four in 10 Britons in their 30s and 40s (45%) are halting any future saving, in favour of spending their cash, is alarming.

The figures from the annual Scottish Widows Savings Study found almost a third (30 per cent) of the new ‘YOLO’ generation – which stands for You Only Live Once – are not currently saving anything at all.
More than a third (37 per cent) of 35-49 year olds admit they didn’t save a penny in the last 12 months

Steve said: “As the overall number of people saving has risen – up nine percentage points in the last five years to almost four in ten (39 per cent) – those aged 35 to 49 are lagging behind in the savings stakes as their younger counterparts become more switched on to the need to save for the future.

“The ‘YOLO’ mentality may occur because, when faced with the prospect of never owning
a house, record low interest rates and the reality of working beyond state retirement age, 35 to 49-year-olds think they have no incentive to save.

“It may also be the case that while a number of the new ‘YOLO’ generation appear to be carefree, not saving could also be borne out of necessity rather than choice for many. Half say they simply cannot afford to save for the long term, and those living in rented accommodation (24 per cent) also face higher-than-average rent costs, forking out £495 a month which is above the UK average of £475.”

But Steve said although the prospect of saving for tomorrow may feel too distant for some, attitudes need to change.

“To achieve long-term goals including financial security in retirement we all need to consider reprioritising our needs to give ourselves a better financial future. If that means reappraising your spending and trying to save a monthly amount, however small, it will be worth it.”

For more information visit www.robertnicholas.co.uk or contact 01952 820155