Rising cost of living top reason for failed life goals

More than half of 40 year olds put their dashed dreams down to rising living costs (55%) according to research from online broker Selftrade. The findings come at a time when Britons have had no choice but to dip into their savings in order to meet the recent cost of living hikes and as a result, people are being forced to delay their retirement or put their future plans on hold.

Previous research from Selftrade revealed that 70 per cent of Britons had hoped to have enough money not to worry about bills by the time they were 40 years old, but less than a third have actually achieved this (29%).

Selftrade has launched a new research based campaign called ‘Plan B’ to encourage Britons who find themselves at a crossroads to regain control of their finances. The execution-only broker asked a GB representative sample of adults aged 40 and above, where they had aspired to be by the time they were 40 years old while they were in their teens and early twenties, and also what had happened in their lives to prevent those goals from coming true.

Looking back…what went wrong?

Not taking proper control of their finances was a top regret of Britons over 40; a third blame their lack of financial management for not reaching their goals in life (33%).

With the news that UK personal debt totals being close to £1.5 trillion, more than one in five Britons believe their own debt became so out of control they lost sight of their goals as a result (26%).

More than one in five Britons over the age of 40 believe that their divorce prevented them from reaching their goal of becoming debt free (26%).

As news breaks that close to three million Britons will be unemployed by 2010, almost two in ten people over 40 have said that their redundancy was the reason they had failed to achieve their life ambitions (19%).

17 per cent of Britons are kicking themselves for not investing in a pension early enough, leaving them ill-prepared for their retirement.

Previous research from Selftrade revealed the top targets in life that Britons wanted to realise were as below:

Life goals that Britons wanted to achieve by the time they were 40 years old - Total %

Be in good health 75%
Be happy 76%
Be happily married 71%
Have enough money not to worry about monthly bills 70%
Own a property 67%
Have children 59%
Be debt free 53%
Excel in my chosen career 34%
Travelled the world 32%
Take up a hobby that I enjoy doing in my spare time 32%
Have a clear aim of when I will retire 26%
Have my own business 11%
Own a holiday home 11%
Have already retired 4%

Dr Stephen Barber, Head of Research at Selftrade commented: “With more than one in twenty Britons blaming poor investment decisions for not fulfilling their aspirations, our findings show that it pays to be financially prepared and make investments work harder to save any disappointments later on in life and to have an alternative plan for when things do not work out as intended.

“With the rising cost of living being labelled as the top reason for why Britons have not attained their life goals, being in control of finances has never been more important. Britons looking for a modern approach to their financial planning should take advantage of tax efficient accounts such as ISAs and Self-Invested Personal Pensions (SIPPs) which put you in the driving seat.

“Selftrade is determined to provide people with the financial information, research, webcasts and tools to help them decide upon their own ‘Plan Bs’. This will make Britons more aware of the investment options available, leaving them better prepared for their future and able to regain control of their destiny.”