Retirees today advise the younger generation to save more for the future, or rather spend less on expensive life events such as weddings. Also, more than a quarter of elders poled by Aviva, suggest that families stay small to be more financially secure and get ahead in later life.
As well as slashing the cost of the big day (60%); other savings advice from beyond retirement is to shop around with every penny (57%), drop designer labels (52%), don’t use credit (48%) and spend less on cars (45%).
Despite the old adage that “you should worry less in life”, this advice was only given by one in ten retirees to the younger generation when it came to their finances.
With the average cost of a wedding standing at £18,500, cutting this cost by half (or more) could provide the happy couple with a significant lump sum to start a pension fund and lay the foundations for future financial security together.
Another potential financial downfall of the young is spending money on designer labels that are often twice the price of non-designer clothing. With the average interest on unsecured debt paid annually by each UK household standing at approximately £2,467, and a second car costing on average £5,869 to keep on the road each year, heeding advice from beyond retirement could go a long way to helping the younger generation cut costs and save more towards the future.
Even taking on board some of this advice, and saving a modest amount each month could make a big difference to a young couple’s income in retirement. For example, a 30 year old male saving £150 a month on designer labels, cars and by shopping around and contributing this to a pension instead, could benefit from £450 income per month, from 65 throughout retirement, in addition to any state pension. His wife saving the same amount from 30 to 65 would enjoy £415 per month.
Source : Aviva
