Report highlights lack of savings among 25 to 40-year-olds

POSTED: 13th December 2012
IN: Personal News

As many as five million people aged between 25 and 40 are currently financially dependent, according to the 'Generation Now' report from Bright Grey.

undefinedThe study highlighted a group of adults known as "neither old, nor young" or NONYs, which have adapted a "live for the day" approach to life.

The findings, which took into account the responses of 20,176 Britons, revealed that 33 per cent of 25 to 40-year-olds have no savings or emergency funds in place.

Savings, however, can help with financial provision for later life and keep people financially secure in the event of a sudden loss of income.

The report revealed that a NONY's main priority in the short-term is keeping up with mortgage payments or rent.

This was followed by planning their next holiday and funding a good social life, however, some may be missing a trick as savings go a long way to meeting these aims and providing a more financially-robust future.

Head of marketing at Bright Grey Jacqui Gillies explained why today's 25 to 40-year-olds may be putting savings and protection to the backs of their minds.

She said: "Times have changed and with this, priorities for different generations have shifted. In the past, people were encouraged to settle down and build a secure financial foundation before starting a family."

Still, the reality remains that savings can help individuals to build up financial support to help them achieve their life goals - whether that is having a family, enjoying travelling, or both. 

Ms Gillies added: "It is always important to bear in mind that the decisions we take now have an impact on our future."

With a fixed rate cash ISA from Aldermore, you can rest assured that your savings are protected from both interest rate changes and tax.

The total ISA allowance currently stands at £11,280 and up to £5,640 can be saved in a cash ISA.

With the ability to kick-start your savings with an initial deposit of £1,000, there is little point in delaying storing up funds for future use. 

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