Weddings, cars and trips abroad: we reveal what Brits are really saving for
If you’ve ever dreamed of retiring at 50 and blowing your savings on an all-out trip to Asia or South America, research suggests you’re not alone. Holidays are one of the most popular expenses Brits are saving for. But the constant economic squeeze on our purse strings, and changing consumer trends, means other once-popular savings goals aren’t as important as you’d think.
We asked over 2,000 Brits to tell us how they planned to spend their savings, and the results are a fascinating insight into Britain’s hopes and dreams for the future. Ever wondered where weddings and holiday homes really feature in our financial plans? Here are the results1, along with the other big outlays that are looming large on our bucket lists.
Pensions are out, holidays are in
From gap years to holiday homes in the Med, Brits love escaping the British weather to warmer climes. However, research suggests our love of travel to far-flung destinations could be even more important to us than our long-term financial health.
Almost one in three Brits are saving for a trip away, while only a quarter of people are saving for their pension. What’s more, only a third of us are saving for emergencies and our own financial stability, suggesting we’re more concerned with the present than the years ahead. But while millennials have a reputation for thinking short-term, one in four 18 to 24-year-olds are saving for later life, compared with fewer than one in five 35 to 44-year-olds.
Buy a home? No, thanks
Getting a foot on the property ladder can seem like an impossible task in many parts of the country and, unsurprisingly, saving up for a new or first home is a low priority for many of us. Only 8% of 18 to 24-year-olds are saving for their first home, along with just a quarter of 25 to 34-year-olds. Our families are taking a back seat in our saving plans too. Just 11% of people said they’re putting money aside to support their family or their children’s education.
How men and women are spending their cash
Women are cautious savers while men can’t resist splashing out on a new car, right? Well, according to our recent survey some gender stereotypes aren’t that far from the truth. A higher percentage of women (39%) are saving for emergencies than men (33%). And 21% of men are saving up for a new set of wheels, compared with just 11% of women.
With weddings, there’s long been a tradition that the family of the bride foots the bill. But our survey results suggest this trend could be on its way out. More than 1 in 10 men are saving for their big day compared to only 4% of women, suggesting it’s the guys – rather than the girls and their families – who are scrimping and saving to tie the knot.
The nation’s savings goals may be shifting, but when it comes to spending all that money we’ve stashed in savings accounts and ISAs, how can we really get the most happiness? We asked a team of psychologists, economists and finance experts whether the things we choose to splash out on
1 The results are based on an online survey, conducted by Atomik Research on behalf of Legal & General, among 2,002 UK adults aged under 65 (18-64). The survey took place between 14th and 16th January 2018. Atomik Research is an independent market research agency that employs MRS-certified researchers and abides to MRS code. Data is available upon request.
really do make us happier, and other top tips for getting the maximum mood-boost from your cash. Read our article to find out more.
Legal & General are committed to bringing you a wide range of views on the best ways to save and spend your money. Ever wondered why we find it so easy to spend and so hard to save? We asked a team of psychologists, economists and financial experts what’s really holding us back, and how we can hack our brains to save more. The opinions expressed in this article are those of the individual experts and may not be representative of Legal & General.