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Sheffield, Liverpool and Cardiff revealed as cities where Brits are most likely to ‘live in the moment’
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Tables turn in Edinburgh and Brighton where people are most likely to sacrifice spending now to maximise income in retirement
New insight* from Nutmeg, the online wealth manager, reveals a third of Brits (31 per cent) would rather spend their cash doing everything they want to do now, even if it means reducing income in retirement.
The online wealth manager polled the nation on its attitude to saving for maximum income in retirement, versus spending their cash now for a better quality of life. It found that of the UK’s largest cities Sheffield (54 per cent), Liverpool (44 per cent), Cardiff (43 per cent) are home to those most likely to want to splash the cash now.
Cutting back now for the future
Showing a more sensible attitude, over half (54 per cent) of residents of Scottish capital Edinburgh are more financially forward-thinking, preferring to sacrifice some of the things they enjoy doing now in order to maximise their income later in life, followed by 52 per cent of people living in Brighton.
In order to maximise their income in retirement, almost a third (29 per cent) of Britons would be prepared to go out less, or eat out less, a quarter (23 per cent) would downsize their property, and another 23 per cent would delay the date of their retirement. A fifth (21 per cent) would cut back on holidays and 20 per cent would give up bad habits such as smoking.
Strategies for saving
A quarter of those polled (25 per cent) are saving into an ISA or making other investments to boost their retirement pot, one in ten (11 per cent) are increasing the amount they save into a pension and another 10 per cent are investing in property. Those in their thirties are most switched on to retirement saving, with 17 per cent of those aged between 30 and 39 increasing their pension contributions and 16 per cent investing in property.
Nick Hungerford, CEO and founder of Nutmeg said:
“Not everyone is thinking ahead, but it is impressive that many people are aware that in order to enjoy a financially stable retirement some sacrifices need to be made now. However, it is still terrifying that there are people who have absolutely no savings plan in place for their retirement. As a nation, there is a significant lack of awareness when it comes to long-term financial planning, particularly with pensions.
“People desperately need help in understanding exactly what it takes to make provision for a comfortable retirement lifestyle. And that means starting in your 20s, not your 50s, when it's too late for most to build up the budget for a stable, let alone dream, retirement. We don't know what the state pension will look like in 10 or 20 years’ time, so it's crucial we seize the moment, save now and invest wisely so, when we finally decide to retire, we can enjoy life to the full.”
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