UK consumers prioritise spending now over saving for later
The online wealth manager quizzed respondents on their attitude to saving for later, versus spending cash now for a better quality of life. It found that of the UK’s largest cities Sheffield (54 per cent), Liverpool (44 per cent), and Cardiff (43 per cent) are home to those most likely to want to splash the cash now.
Conversely, 54 per cent of Edinburgh residents are prepared to sacrifice luxuries in order to maximise their future income, the highest in the country. Brighton followed, with 52 per cent of residents.
In order to maximise their income in retirement, 29 per cent would be prepared to go out less, or eat out less, 23 per cent would downsize their property, and another 23 per cent would delay the date of their retirement. 21 per cent would cut back on holidays and 20 per cent would give up bad habits such as smoking.
Of those actively engaged in saving strategies for the future, 25 per cent are saving into an ISA, or making other investments to boost their retirement pot. 11 per cent are increasing the amount they save into a pension, and another 10 per cent are investing in property. Consumers in their thirties are most switched on to retirement saving, with 17 per cent of those aged between 30 and 39 increasing their pension contributions and 16 per cent investing in property.
“Not everyone is thinking ahead, but it is impressive that many people are aware that in order to enjoy a financially stable retirement some sacrifices need to be made now,” said Nick Hungerford, CEO and founder of Nutmeg.
“However, it is terrifying that there are people who have absolutely no savings plan in place for their retirement. There is a significant lack of awareness when it comes to long-term financial planning, particularly with pensions.
“People desperately need help in understanding exactly what it takes to make provision for a comfortable retirement lifestyle. And that means starting in your 20s, not your 50s, when it’s too late for most to build up the budget for a stable, let alone dream, retirement. We don’t know what the state pension will look like in 10 or 20 years’ time, so it’s crucial we seize the moment, save now and invest wisely so, when we finally decide to retire, we can enjoy life to the full.”