'Foundation generation' is protecting its future

The UK's foundation generation are much more savings savvy and more likely to shop around for the best savings interest rates.

According to Aviva, 25 to 35 year olds are serious about managing their money and are taking steps to ensure they find the right balance between their daily spend, laying down savings and paying off debt.

The research shows that they are defying the volatile climate by preparing for their long-term financial future.

Some 50 per cent of the foundation generation have a workplace or personal pension, 89 per cent have a savings account and 41 per cent currently invest in a cash Isa.

Furthermore, some 34 per cent have taken out life insurance and of the people who do not have a pension, 19 per cent claim it is because their employer does not offer one.

This research shows that the younger generation is making sensible choices in a difficult climate, with many favouring long-term goals such as a house purchase or paying off debts over taking holidays and enjoying hobbies.

"With so much concern about people not saving enough for their retirement, it's really good that this younger group of men and women seem to be actively managing their finances and planning for their future. This generation has the ability to make a real difference to their standard of living right up to and through retirement, if they put money aside now for the long-term," said Aviva's Director of Workplace Savings Paul Goodwin.

He added that with auto-enrolment taking effect from next year, even more young people will be prepared for their financial future.

The findings follow other good financial news, with Nationwide announcing that house prices continued to creep up in November, as house values are now 1.6 per cent higher than they were a year ago.
 

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2011-11-29 12:42:30 © Moneyextra.com