'Live within your means and don't get into debt' - Nottingham's twenty-somethings take on advice from the over-50s
LIVE within your means and don’t get into debt, start planning for your future early and make saving for your retirement a priority.
That’s the advice from the over-50s to Britain’s twenty-somethings according to a new survey by Skandia, but the advice doesn’t always get through to young people struggling with different financial priorities.
The investment specialists asked 500 professionals in their 50s what advice they would give to younger people when it came to looking after their money.
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And while an overwhelming majority (94 per cent) urged the younger generation to do their utmost to avoid getting into debt, only seven out of ten twenty-somethings said they were prepared to take the advice on board.
But despite 71 per cent of those aged 50-plus urging the younger generation to make saving for retirement a priority, only 30 per cent of twenty-somethings said they planned to start putting money away for when they stop working.
Retirement is the last thing on the mind of Amy Hayes, 26, from Clifton in Nottingham who said: “At the moment I'm more worried about paying off my student loan and having enough money to be able to live and go out the weekends, to be able to go and see friends and stuff like that.
“I don’t think I’ll be putting any money aside for my retirement or starting a pension any time soon. “Maybe when I begin thinking about starting a family – although obviously you don’t want to arrive at retirement age and realise you don’t have enough money to live on.”
However, according to Skandia’s Growing Pains report, published earlier this year, which surveyed more than 1,000 (1,076) people aged 18 to 30, almost half (44 per cent) are performing financially much worse than expected.
All reported some level of debt but over a third of them (35 per cent) have debts of £5,000 or above and less than a quarter (23 per cent) have some form of pension.
Brian Jefferies, 61, said not enough young people were thinking about the challenges in their financial future.
“Unfortunately, many young people are disillusioned and apathetic, merely living for today,” said Brian, a chartered building surveyor.
“It is difficult to persuade young people to save for the future when few have sufficient funds to set aside after living expenses.
“It is very difficult to advise young people to live within their means. Many do not have a concept of the value of money, believing that if you have a credit card you can buy what you want.
“Today, the culture is very much buy, spend now and think about how to pay it back eventually.”
Graham Bentley, Skandia’s head of investment strategy, added: “Clearly there is a mismatch between what young people believe they will achieve and what they are actually doing to ensure they will have enough funds to support a comfortable retirement.”