UK singletons delay settling down and forget about finances

• One in ten UK singletons are out of control of their finances
• Over half of UK adults (24 million people) refuse to cut back on spending to save more for retirement

UK singletons could be fuelling the UK’s inability to save for the future as one in ten currently feel out of control financially whilst 41% have already suffered a financial crisis at some point in their lives, compared to 28% of married people. IFA Promotion’s annual ‘Get Saving!’ study*, launched today, shows that just over half of the UK adult population (24 million people) are not prepared to cut back on spending to save more for retirement, and nearly three quarters (70%) claim they cannot save a penny more than they currently do. This is despite the widely reported UK savings gap and the possibility of a rising state retirement age.

‘Middle youth-ers’ delay being grown up about their money

Our grown-up experiences are being delayed as the average age** for a first marriage (28 for women and 30 for men) and buying a property (34) both steadily rise. This naturally impacts on our attitude towards our money as people feel they can put off settling down and being grown up about their finances. One in four singletons (24%) simply don’t think about the impact of their current financial situation on their future lifestyle – compared to less than a fifth of the population as a whole. Taking a step onto the property ladder is an important trigger for getting a hold of your finances - three times as many renters feel out of control of their money as those with a mortgage – therefore if the home buying process is delayed the savings gap will only widen as a result.

The research also revealed:

• 72% of 25-34 year olds prefer to bury their heads in the sand and simply don’t know what their financial situation is.
• 16-34 year olds say they aren’t saving enough because they are simply enjoying spending their money (24%) or paying off debts (38%).
• A quarter of this group (25%) say they do plan to start saving in the next twelve months however.                  
• The number of people who believe they are saving enough has dropped from 40% last year to 28%.

David Elms, Chief Executive of IFA Promotion, says, “Retirement seems a long way off when you are in your late twenties or early thirties but if you don’t start planning for your pension in time it will have a serious effect on your future lifestyle. We are delaying important life events such as marriage and mortgages until later in life but this doesn’t necessarily mean we want to work into our dotage because we can’t afford to retire. The only sure-fire way to solve this dilemma is to take some responsibility for your long term finances now and get saving.” 

Call 0800 085 3250 or visit www.unbiased.co.uk/getsaving for IFA Promotion’s Get Saving! interactive SaveFast Budget Planner which takes you though your incomings and outgoings and helps you work out how much more you could save per month.  You can also obtain details of local independent financial advisers to talk through the most suitable savings options for you.

-ends-

* The Get Saving! 2005 report was produced for IFA Promotion by RAKM, and is partly based on an analysis of Inland Revenue, ONS, DWP Family Resource survey, Bank of England and ABI along with a specially-commissioned face-to-face consumer survey of 2,000 UK adults (16+), conducted by BMRB during October 2005.  With detailed queries on the report, call Paul Hersey at RAKM on 01737 216 940.  To view and download previous Get Saving! reports visit www.unbiased.co.uk/getsaving  

**ONS figures

For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

For further information please contact:

David Elms                                  Liz Willder/Chloe Merriman

Chief Executive                           Lansons Communications

IFA Promotion                             020 7294 3677 / 020 7294 3681

020 7833 3131

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In the past 12 months, over 530,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

·        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

·        Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

·        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.              Independent Financial Adviser Promotion’s sponsors

Post this article to: del.icio.us - Digg - Newsvine - Reddit - Furl - MyYahoo!

Read more press releases