The majority of Brits are failing to save sufficiently, arguing that they have other financial priorities or that they are simply “young enough not to have to worry”.
The latest study on behalf of Friends Life reveal that 43% of those Brits who are in employment suggested they were saving through an occupational pension and 17% via a personal pension. More than one in three (32%), were not saving for a pension at all.
The most common reason for not saving is simply “being too young to worry about it”. Up to 35% of non-savers agreed with that statement, while 24% said they had “other financial priorities”. A further 16% said they hadn’t “got round to it yet” and one out of ten said they expected the state to provide a retirement income.
“It’s no surprise that for younger generations the idea of instant gratification prevails. But the common argument of ‘I can’t afford to save’ wears slightly thin when you compare regular savings habits with regular outgoings such as gym membership or satellite TV,” said Andy Briggs, Chief Executive Officer at Friends Life.
On top of this, the study revealed a “paternalism” culture in which almost three quarters of Brits felt employers were responsible for providing a good benefits package, including, for example, healthcare and childcare. 87% said it was the responsibility of their boss to provide a good pension.
While years ago British workers were more independent, today’s workforce expect the Government or their employers to play a paternal role regarding their financial future and pension.
“Why would people look to something that is kind of deferred gratification, which is what a pension is, when there are so many opportunities for instant gratification in terms of spending money now?,” wondered Ian Costain, from the Association of Independent Financial Advisers.
Indeed, instant gratification appears to be what is fuelling most of today’s spending.
Making cutbacks and budgeting is the most effective way to manage your expenses. Unfortunately, however, budgeting is not always enough. Unsecured loans are available to give you access to the funds you may require.
As with any form of borrowing, it is important to ensure that you are able to meet repayments and fully understand the terms and conditions attached to your loan.