Wish you'd handled your money a bit better over the years? You're not alone.
Failing to build up a big enough nest egg is the nation's top financial regret, according to a new study.
Research by specialist insurer Partnership found that just 5% of us say that we have no financial regrets. In contrast a whopping 40% said they felt they had not saved enough generally, while almost one in five (19%) said their top regret was not saving enough specifically in their pension.
“Not saving enough, especially into a pension, was the main regret of all age groups – a problem which implies they either do not earn enough or they don’t have a firm handle on their finances,” said Mark Stopard, head of product development at Partnership.
Our most common money mistakes
While not saving enough is perhaps not the most surprising winner here, there were some less obvious regrets that topped the list for some respondents. Of the 2,000 people surveyed, 7% said they regretted getting married as they had later divorced. Meanwhile 10% said they regretted poor financial choices linked to their family and friends (such as lending them money or taking their advice).
“Interestingly, making poor financial choices linked to family/friends and getting married and subsequently divorced are also relatively high up on the list which suggests that sometimes the heart overrules the head when it comes to finances,” adds Stopard.
|
|
18-39 year olds |
Over 40s |
Everyone |
|
I did not save enough |
50% |
34% |
40% |
|
I did not save enough into my pension |
14% |
22% |
19% |
|
I got myself into debt |
15% |
16% |
15% |
|
I wasn’t able to work more or earn more in my chosen career |
12% |
11% |
11% |
|
I made poor financial choices linked to family and friends – e.g. lent money or took advice |
10% |
10% |
10% |
|
I put money into an investment that didn’t perform |
5% |
12% |
9% |
|
I delayed buying a house |
6% |
7% |
7% |
|
I got married and then divorced |
10% |
1% |
7% |
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How to avoid financial regrets
“While hindsight is 20:20, this list does highlight mistakes that other people can learn from,” says Stopard.
“Indeed, no one cited saving too much as a problem, which certainly implies that, whenever possible, people should look to be as prudent as they can with their income and put aside what they can afford for later life or a rainy day.”
If you want to start saving more you could open a regular savings account and slowly build a nest egg. First Direct, HSBC and M&S Bank all pay 6% on their regular savings accounts if you are a current account holder. Alternatively, Nottingham Building Society offers a 3.10% variable rate on its Regular Saver.
For small to medium-sized savings, try a high-interest current account.
[SPOTLIGHT]The TSB Classic Plus Current Account pays 5% on balances under £2,000, while the Nationwide FlexDirect Account will give you the same 5% on balances up to £2,500, but only for the first year. The Tesco Bank Current Account offers 3% on savings of up to £3,000, while the Club Lloyds Current Account gives you 4% on balances between £4,000 and £5,000. And if you have a pot of up to £20,000 you can get 3% interest with the Santander 123 Current Account.
Building up a decent savings pot will also help you avoid getting into debt. If you already have some debt, reduce the interest you are paying on it so you can clear it faster. Lenders are currently locked in a war to win your credit card debt with balance transfer cards which have incredibly long 0% periods of up to 40 months. Read The best 0% balance transfer credit cards for more.
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