While the rest of Europe is experiencing dire financial straits, Britain’s 25 – 30 year old ‘foundation generation’ are more financially savvy than ever, budgeting well and planning for the future, an Aviva study has shown.
The findings from the research show a financially aware generation that is combatting today’s tough economic environment by developing their careers, managing their debt and budgeting their day to day lives.
Aviva’s director of Workplace Savings, Paul Goodwin, said action now will make all the difference for this generation in retirement.
“With so much concern about people not saving enough for their retirement, its really good that this younger group of men and women seem to be actively managing their finances and planning for their future.
“This generation has the ability to make a real difference to their standard of living right up to and through retirement, if they put money aside now for the long-term.”
Goodwin also said the idea that saving is not a priority for young people was wrong, and it is good to see evidence of this.
While there is a natural tendency to think that the younger generation will put off saving for retirement to fund their lifestyle now, this research shows that they do actively want to balance their spending with long-term saving.
“What we need to see is that this desire to save translates into more people actively putting money aside for the future as soon as they start their working lives.”
The Figures
Financially responsible:
Money is being used wisely with 89 per cent of the foundation generation holding a savings account, 38 per cent having some form of work pension, 12 per cent having a private personal pension, 41 per cent investing in a cash ISA and 34 per cent receiving protection from life insurance.
The main reasons people in this age group dont pay into a pension provided via their employer is that they either cannot afford to pay into it (20%) or they work for an employer which does not offer one (19%).
Employers supporting saving:
When asked about their preferences in the next five years for saving for retirement, 26% said they would prefer to save into a workplace pension, 22% into a private personal pension, and 18% through a savings option other than a pension, such as property. Asked specifically ab
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