TISWAS generation facing bleak financial future

They may have been brought up during a golden age of children’s television, but the gaping financial black holes of the TISWAS Generation – ThIrty Somethings Without Any Savings – mean many will have to work into their 70s or hope they start earning six-figure salaries just to get by.

New research from Skipton Building Society reveals that people from Yorkshire aged 35 or younger will need to start earning £283162 a year if they are to retire at their hoped-for age of 64 on their current average salary of £26540. Failing that, they will need to either scrape through retirement on £304 a month – or work until they're 741.

Despite looking to retire at 64, around half of under 35s in Yorkshire (53%) contribute nothing to a pension, and 20% contribute just £50 or less. 66% know they should save for the future but claim they simply cannot afford to do so, with 47% admitting that they struggle financially.

And the research reveals just how difficult under 35s in Yorkshire are finding it to make ends meet. Although they earn healthy salaries, nearly one in seven (15%) spend more than they take home each month, with a further 56% having less than £100 left over at the end of the month.

The TISWAS Generation’s single biggest outgoing after rent and mortgage payments is on servicing debt; credit card bills and loan repayments account for an average of £160 a month – compared to £85 per month spent on socialising – with around one in 20 (4%) paying more than £500.

Three quarters of people from Yorkshire aged under 35 (73%) are in debt of some kind, with the average amount owed at £8477 and 11% owing in excess of £20,000.

And this is only the edge of the TISWAS Generation’s financial black hole. With so many spending so much paying for yesterday, saving for tomorrow is rare. 62% have less than £1,000 squirreled away, while around one in three (30%) have no savings whatsoever.

To make ends meet, many of the TISWAS Generation are risking financial meltdown, delaying paying bills (21%), debt repayments (18%) or rent or mortgage instalments (17%). Others have gone even deeper into debt, turning to friends and family (39%) or the bank (17%) for loans.

For some, financial hardship has even led to real physical hardship, as 27% have been forced to not eat properly and 25% to take on more than one job.

Despite this, many of the TISWAS Generation are still burying their heads in the sand when it comes to their finances. Nearly a third (29%) of people from Yorkshire plan to ask mum and dad for help with a deposit for a house, with a similar proportion (25%) relying on money being left to them in their parents’ or other relatives’ wills to help with their pensions or savings.

And in a last ditch effort to get by, 29% have even tried to win themselves out of debt by playing the lottery, around one in seven (15%) confident that a future win will be the solution to their financial woes.

But there is some good news. Those who can afford to save are approaching it seriously, putting away an average of £125 a month, with 16% having more than £10,000 set aside for their futures.

Jennifer Holloway, head of media relations at Skipton, added, "Perhaps the frivolity that was at the heart of the TISWAS TV show rubbed off on its viewers, if our research into their attitudes to money is anything to go by. But it’s definitely time for a wake up call - especially when our figures show today’s under 35s will either need to work much, much longer or earn much, much more to be able to retire when and how they want to.

“However, the good news is that those who have taken a more serious look at their money (perhaps viewers of the more sedate Swap Shop) are doing well, with one in seven savers having more than £10,000. And even though it may seem daunting, it could be easy for those in the red to join those in the black. The first step is to work out exactly how much money is coming in and going out each month and Skipton’s budget calculator at www.skipton.co.uk can help with that.

“Then, when you’ve spotted where a few sacrifices can be made – perhaps by going out a little less or buying fewer CDs – it’s a good idea to open a regular savings account. By setting up a standing order so that the cash is transferred from your bank account as soon as you're paid, you won't even notice it's gone. And for those who might be tempted to dip into their savings for the odd spending spree, an account with limited access would be a good choice, like Skipton's Special Saver where you can't touch your money for the first 12 months."