Younger generation becoming more astute with money

More and more UK consumers still have a ‘live for today’ attitude and are putting off their retirement planning, according to research from Co-operative Insurance (CIS).

As many as 75 per cent of consumers only consider themselves to be good with money if they have funds left in their current account at the end of each calendar month, thereby not slipping into an overdraft facility.

Historically, the ‘buy it now - think about it later’ approach was typical to the younger, more free-spirited generation, however CIS’s research contradicts this stereotype by finding that an increasing amount (65%) of over 55 year olds believe they are being good with their money if they avoid going into the red.

On the flip side, today’s younger generation, who have been brought up in an environment where credit and debt are seen as the ‘norm’, are adopting a more sensible approach to finances, and class being good with money as having some form of savings or investment in place (82%).

However, although youngsters appreciate the importance of having savings in place, much more has to be done to raise awareness of the magnitude of having some form of pension provision in place, as less than half (42%) of 16 to 24 year olds do not consider having a pension as being good with money.

David Newman, Director of Marketing at Co-operative Insurance, said: “The stark reality nowadays is that it is never too early to start your pension planning. Even though it may still be a number of decades until you intend to give up work, it is hugely important to have the financial provision in place to enjoy your retirement, rather than worrying, like many people obviously are, about counting the pennies each month.

“It may well be that relying too heavily on the diminishing state pension is a contributing factor to the over 55’s money concerns, which is why it is encouraging to see that the younger generation are beginning to acknowledge the importance of saving. However, given that around 12 million Britons are currently still not saving enough to fund their retirements, it is clear that more needs to be done to ensure that quality of life is protected once the decision is made to finish work.”