A new financial year is upon us. With a new improved ISA allowance of £15,240 available, will you invest more or less this tax year than you did last year? To help us understand the nation’s attitudes to savings and investment, we commissioned a leading national polling firm to find out. The results showed an interesting age split in those expecting to save and invest more.
- A quarter (25%) of people in the UK are expecting to save or invest more in the next tax year
- Almost half (42%) of young people expect to save or invest more in the next year
- In comparison, only 16% of the baby boomer generation (aged 55+) expect to save or invest more in the next year
On the whole, quite a lot of people have a greater appetite to invest. But the savings split between millennials and baby boomers turns conventional wisdom on its head. There’s a common perception that young people are disinterested in thinking about their finances. But as the results show, the reality is different. Could this be a reflection of a change in culture brought on by student debt and auto-enrolment?
There are increasing financial pressures on young people, with graduates today leaving university with an average debt of £44,000. The introduction of auto-enrolment in workplace pension schemes also means that young people are being nudged to think about retirement earlier than before.
The top three cities expecting to save or invest more in this new next year include London (32%), Manchester (27%) and Edinburgh (27%), whereas research found that people in Norwich (20%), Plymouth (19%) and Liverpool (16%) have less expectation to save.
It is perhaps unsurprising that London leads the savings charge, with more people than any other region expecting to save more in the next tax year. We often hear of a North-South divide in savings expectations, but our research shows no clear evidence of this split, with results varying across UK cities.
What do you plan to do? We want to hear from you. Tell us if you’re planning to save more or less in this new tax year than last, by taking part in our poll below:
Opinium Research conducted an online survey from the 13th to 16th February 2015; amongst 2,001 UK adults aged 18+. Results have been weighted to nationally representative criteria.