05/07/03

Britons are taking an increasingly short term view on their finances, preferring to save for the here and now rather than plan for the longer term, according to Alliance & Leicester’s Wealth Tracker Index. While more than one in three people in the UK (35%) plan to save money towards a holiday via their bank or building society, less than half of them (17%) plan to save for their children’s future and less than one in ten people (8%) are saving for their retirement.

With the cost of raising a child becoming increasingly expensive each year, with higher education, getting on the property ladder and the cost of weddings all proving too expensive for many young people to fund alone, parents will increasingly be challenged to find ways of providing financial support for their children later in life.

As part of its quarterly study, Alliance & Leicester’s eighth Wealth Tracker Index asked a GB representative sample of 2,000 people what they are most likely to save for via their bank or building society.

Key findings:

The car remains the ultimate status symbol for many people, although for many it takes time to afford to buy a new car.  One in ten Britons claim they will put money aside for a new car in the future.  Men were nearly twice as likely to save for a car (13%), compared with just 7% of women.

For many, simply getting on the property ladder is still a priority.  6% of Britons are saving towards a deposit for a house.

With the average age of marriage now at 28 for women and 31 for men1, people have many financial demands before funding their wedding.  This is illustrated by the fact that just 3% of Britons plan to put money aside for a wedding.

With the ongoing issue of the pensions gap, Britons are looking at alternative investments for their future.  While 8% claim to be saving money in the bank or building society towards their pension, 15% are saving for home renovations or decoration.

Provided by Alliance & Leicester