Older people least willing to give up luxuries
Younger people happiest to ditch nights out and holidays in order to boost savings.
Older people are least willing to give up luxuries in order to save, according to new research from HSBC.
The study surveyed people on whether they were willing to ditch things like takeaways, nights out, gym memberships, online subscriptions, new clothes and holidays in order to boost their savings.
Younger people (those aged between 18 and 24) were the happiest to forego treats. They led the way with 56% happy to ditch nights out, 53% prepared to give up eating out, 46% ready to drop spending on new clothes and 29% content to give up holidays. Just 4% said they were unwilling to give up any of the luxuries listed.
By contrast, those aged over 56 were the least willing to drop their spending. Just 48% would consider giving up nights out, 33% would drop eating out, 28% would cut back on new clothes and a paltry 13% would drop holidays. Almost one in five (18%) were unwilling to drop any luxuries at all in order to save more.
Disposable incomes
Perhaps part of that reticence to cut back comes from the fact that older people enjoy a higher disposable income today than they did just after the financial crisis.
HSBC looked at average earnings data from the Office of National Statistics and compared it with average essential weekly spending on food, housing, fuel, power and transport to come up with the average monthly disposable income for each age group.
The data shows that while younger generations are struggling with almost £200 less a month, over 50s are enjoying marginally higher spending money compared with six years ago.
|
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
|
18-30 |
£569.40 |
£566.80 |
£466.48 |
£401.48 |
£342.98 |
£355.12 |
£380.28 |
|
30-49 |
£1,490.02 |
£1,516.23 |
£1,488.50 |
£1,478.10 |
£1,465.97 |
£1,421.33 |
£1,427.48 |
|
50-64 |
£1,115.40 |
£1,163.93 |
£1,185.38 |
£1,166.10 |
£1,186.90 |
£1,186.25 |
£1,179.12 |
|
65+ |
£926.18 |
£863.55 |
£987.30 |
£1,009.80 |
£1,044.40 |
£991.48 |
£990.99 |
Saving for sunshine
The most popular savings goal among the over-30s (29%) was a holiday, with 20% of people aiming to pay for home improvements. Unsurprisingly, the bulk of under 30s who are tucking money away each month are saving up a deposit for a house.
Get the best return on your savings
Saving in the wrong places
While the good news is that there is an appetite for saving, the bad news is most of us aren’t putting that money in the right place. More than half (53%) of us choose to save into an instant access savings account, despite the fact these accounts tend to offer the lowest interest rates. Only 43% of us are saving into ISAs.
To find the best home for your money, check out Where to earn most interest on your cash.
Get the best return on your savings
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Comments
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I'm an older person who would be amongst the 4% that would be unwilling to cut back on these luxuries. If anyone asked me if I would give up on holidays I'd answer no because I haven't had a luxury holiday in years. 3 nights self catering on a 'Sun' holiday is hard to cut back on! My entertainment is a once a week visit to the local pub to take part in the quiz. It costs £1 to enter and includes a free curry. Cheaper than eating at home so 'cutting back' would leave me out of pocket. As for clothes, the occasional purchase on eBay is all I need to keep myself clothed. So if you asked me 'would I give these things up?' I'd have to answer No. I cut back years ago and I can't say I'm about to start spending again. If would be a fairer question to ask 'Do you spend money on these things?'
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So I, at almost 68, should be saving so that I can pay even more Inheritance Tax to HM Treasury? Bog off. My income from interest has fallen dramatically in the past six years and my pension has been 'filched' by the government using their crooked CPI instead of the RPI as was set out when I signed up. As for luxuries, well when I was 18-30 there were none as I earned so little it had to go on the house and family.Now, well we drink wine every day , go to the US, we run two cars but pay sticking high Council Tax at Band G. I am not feeling guilty about my life of working for 44 years without a break but you have to use what opportunities present themselves and work at them.Do not sit around moaning about your lot but get the Anglo-Saxon work ethic and keep moving on.
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This site seems very ageist they are always knocking the over 50's. The 18-30's do not save or do without holidays as most weekends they are lying in the gutter pissed as newts. Most of their money is pissed up the wall. You only have to go to London or the popular Spanish holiday resorts on a Friday evening and see hoards of females lying in the gutter drunk and covered in their own vomit. Why should the over 50's do without, most have paid their mortgage off and been promoted at work. Why do they need to save? HSBC are a bunch of wankers they pay the lowest interest rates on savings, why would anyone want to save with that bunch of tossers.
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24 May 2015