Over 40s advice to youngsters: save more and don’t get married young
When asked what two pieces of financial advice they would provide the younger generation with, 42% of over 40s said building up a rainy day fund should be a priority.
The research by financial services company Just Retirement, found that nearly a third (27%) said people should commit to saving little and often, rather than a lot over a short amount of time.
One in four over 40’s recommended putting more into pension savings while 22% said it’s best to borrow less and save more.
And 17% said one of the best bits of advice is to not lend money that you can’t afford to lose, with 5% saying that you should avoid lending money to family and friends.
The over-65s – who are more well placed to impart their financial wisdom – said that building up a rainy day fund and putting more into your pension should be a priority by the younger generation.
The top tip offered by this age group (18%) to people about accessing their pension savings is to secure a guaranteed income for life to pay their way in retirement.
Property was also on the agenda as 12% of over-40s advocated people to buy as soon as possible. This rose to 17% of those aged 66-75.
Turning to relationships, 9% of over-40s (rising to 14% of 51 to 55s) said that people should not get married too young and 1% suggested that divorce should be avoided.
Stephen Lowe, group communications director at Just Retirement, said: “At one time or another, most people have received financial advice from their parents or older relatives. While it isn’t regulated financial advice nor always appreciated, these common sense tips which focus on saving, borrowing and lending can not only make a real difference but are generally based on years of real-life personal experience.
“With the national property obsession, it is surprising to see that getting onto the housing ladder as soon as possible was not more highly recommended. This may be due to over-40s recognising the challenges the younger generation faces but by listening to the other pieces of advice, people are more likely to be in a position to realise this goal.
“Admittedly, hindsight is 20:20 but we hope that this research will help the younger generation learn from the mistakes of the over-40s and make proactive choices that mean they are able to reap the benefits of solid financial planning.”