Lack of saving by young people leave many on brink of calamity in financial crisis
In a recent survey undertaken by Investing.co.uk, our figures point to a shocking lack of financial planning by younger people which could potentially lead to financial disaster if they lose their income.
Four-fifths of people in the 20-35 year bracket could lose their homes within three months if they became unemployed because they have no savings to fall back on in an emergency.
The simple fact is that many people do not see forward financial planning as a priority and make no provision for an uncertain future.
“These are shocking figures,” said Investing.co.uk’s founder Adam Grunwerg, “The current generation are seemingly living for the day and spending their money rather than putting some aside for when it might be needed.
“This is endemic of what’s rapidly becoming known as the ‘renting generation’, who would rather not save money for a mortgage, pension or even for emergencies.
“In fact, we’ve seen surveys that show people spending money they admit they ought to be saving. Where’s the sense in that?”
Figures obtained by our site show that a quarter of young people have savings of less than £3,000, while 36% have no savings at all. This compares with the average savings of £36,000 for people in their parents’ age range.
Four-fifths of people surveyed said they had spent money they should have been putting aside for a mortgage deposit. Only a third of people plan to buy a home rather than rent.
“Its shocking but the average London graduate spends 40% of his salary on rent, while another 9% is spent on student loans repayment and a further 20% is spent on tax on tax”
“There’s so little money going into investment or savings that some people are finding themselves rapidly up to their necks when they hit troubled times,” said Adam, “Some people are just one missed payment from disaster.”