New research from Standard Life shows people in East midlands save more into a pensions plan each month than any other region in the UK.
On average, they save £172 a month towards their pension, £35 more than average. Those in the North East save the least into a pension each month, just £102, followed by people in Scotland who save £110 a month.
Overall, those in Wales have more regular financial commitments, such as mortgages, rent and utility bills, than any other region. Yet they still spend £84 less on these each month than people in London who have the fewest. On average, Londoners spend £1056 a month on their regular financial commitments, with their mortgage making up the lion’s share of this at £814 a month on average.
Standard Life’s research exploring commitments has been developed with psychologist Professor Janet Reibstein. It illustrates how understanding the link between financial and emotional commitments can help us plan for the future and the key stages in our lives much more effectively. People can find out more about this research and how it applies to them at knowyourcommitments.co.uk
The research reveals three core commitment life stages with transition phases in between:
– Commitment Sleepwalkers (18-24) who have a smaller amount of financial and personal relationship commitments. Their regular financial commitments amount to just £458 a month. They spend the least amount of time thinking about their finances so are at risk of overlooking the long term cumulative affects of these costs.
– The Fully Committed (35-44) who are at the peak of their regular financial commitments, spending an average of £1,160 each month and likely to be paying a mortgage, looking after a child and paying off any debt accrued in earlier life.
– Commitment Slowdowns (55+) who are starting to become less financially and emotionally committed. They are spending £818 on their commitments each month, almost £100 less that the average.
Commenting on the research findings, Professor Reibstein said: “Planning our personal finances can provide a foundation for our emotional commitments. It can also impact on our ability to achieve future goals. To make sensible, lasting, and satisfying commitments in life you must first start with your future and your aspirations. Then you work back from that – planning the financial circumstances that will allow you to achieve what you want in life, so you can look toward your future with optimism. Our research suggests that many people across the UK have still to make this connection and approach their finances in this way.”
Standard Life’s John Lawson added: “Understanding how our emotional and financial commitments are linked and how they are likely to change at each life stage makes it easier to plan ahead. Planning for a financially secure and happy retirement is just one example of this. It is vital that people engage with their personal finances and their emotional relationships, not as two separate commitments, but as one single entity that supports their aspirations. With the financial plans in place to support their aspirations, they will be able to feel much more confident about the future.”
Source : Standard Life
