New figures show
Just 47 per cent of UK adults have money in a savings account, according to research from Zurich UK which also found that one in six (17 per cent) have no savings or investments at all.
The Set the Right Goals study examines money saving habits and identifies the nation’s savings gap by combining research from YouGov of over 2,000 UK adults across the UK with a unique, industry-leading behavioural experiment from neuroscience specialists Mindlab. This tested a further 900 participants to measure the effect of emotions on saving.
A quarter (26 per cent) of those yet to retire do not have either a private or workplace pension, with eight per cent of UK adults aged under 65 who are not actively saving for the future believing that the state pension will provide them with enough to live on.
But it’s not all bad news – the simple act of setting tangible goals for later life (when you are aged 65 or over) can make a huge difference. Zurich’s findings showed that those who set goals for when they are aged 65 or over, such as travelling more, taking up new hobbies or being in a position to financially support children and grandchildren, save 7.25 per cent of their salary into their pension, while those who don’t know what their aspirations are for the same period save just 5.36per cent.
Anne Torry, Head of Zurich UK Life, commented: “For most of us, managing our money day to day occupies most of our attention particularly when rising inflation puts family budgets under ever greater strain. But our research demonstrates that thinking about what you aspire to and having goals for the immediate and long term will inspire people not only to save, but save more. This is why it is so critical to take time out, and visualise your future so that you can then take action to financially prepare and realise your ambitions.
“Small steps taken early on can make a huge difference. Saving regularly into your pension or drip feeding amounts of money into the right investment can generate an income that will make your goals achievable, whether this includes travelling more or supporting loved ones”.