Forget the myth that young people want it all now and aren’t prepared to plan for their future. In a new study, 75% of the UK millennials asked said they would either ‘definitely’ or ‘possibly’ be prepared to miss out on their summer holiday to start saving for their future.
The survey of under 35s, carried out by Standard Life and financial researchers Explain the Market, also found that more than a third of UK millennials (36%) plan to start saving for the future for the first time in the next three months. The top ways they plan to save are by putting money into a savings account (65%), changing their daily habits (31%) and taking out an ISA (24%).
Making your future the top priority
Jamie Jenkins, Head of Pensions Strategy at Standard Life, says: “Taking a week out to go on a holiday is a fantastic way to recharge your batteries, but it’s reassuring to see from our research that saving for the future can be a higher priority at times.
“Good savings habits like putting a small amount of money away every month and making a conscious effort to cut down on unnecessary expenses can mean you have a lot to look forward to further down the line.
“Diverting money from takeaways and coffees in order to focus on saving instead can help make sure your life savings grow without making huge sacrifices.
“Setting priorities and long-term financial goals can really motivate you to keep saving regularly. It’s all about making the right choices, so you can enjoy today, while continuing to pave the way for a better future.”
Here are four simple steps you can take today towards planning your brighter future:
Just do it
Getting into the savings habit early can make a big difference further down the line. Your workplace pension is a great place to start and millions of employees are saving this way now. Read our blog on saving for the future for more. Instead of viewing saving into your pension as giving anything up, think of it as paying your future self. [link]
Grasp the basics
Do you know the difference between saving and investing and which will best suit your financial goals? If you’re not sure, you can read our simple guide or learn more from the Money Advice Service. When you’ve done that, if you’d like to read more about how investing works we have a straightforward investments guide
Set your goals and check your progress
Take time at the outset to consider what you want for your future. What sort of lifestyle do you dream of, what sort of attitude do you have towards taking risks (try our questionnaire), what are you saving for and what investments could be best suited for you?
If you’re planning for a comfortable retirement, you can get started by finding out how your savings plans are shaping up with our simple pension calculator.
Can an ISA help you save?
Nearly a quarter of people in our survey said they planned to save using an ISA (an Individual Savings Account you can save virtually tax-free with, either in cash or stocks and shares), and it’s worth considering how an ISA can help make your money work for you. If you’re not sure how they work or if they’re the right option for you, we have a simple guide to ISAs or you can read the UK Government’s overview.
The views expressed in this article should not be regarded as financial advice and information is correct as of August 2018. It’s important to remember that a pension is a long-term investment and as such its value can go down as well as up. It could even be worth less than was paid. Remember that the value of your investment can go down as well as up and may be worth less than you paid in.