Seven in ten UK adults dream of a holiday of a lifetime, yet only half that number are likely to be planning their future finances to make this happen.
Long term savings and investments provider Standard Life has found that seven in ten UK adults will plan five years ahead for a luxury holiday, yet far fewer people plan their finances five years ahead to make lifestyle goals happen.
In a UK wide consumer poll launched by Standard Life to investigate the nation's attitude to planning for the future, the UK emerged as a much more patient nation than expected. Over 8,500 people took part and almost seven in ten (70%) of them said they were willing to wait until 2016 for a holiday of a lifetime, rather than head off on a luxury short break this year.
This isn't what Standard Life expected the poll to show and contrasts with earlier research[1] which found that less than four in ten (38%) people apply the same forward planning principles to their finances.
The poll, in partnership with boutique hotel specialist i-escape.com, invited people to vote on which prize they would prefer; a short break this year worth £640[2], or a holiday of a lifetime in 2016 worth £5,000[3], with seven in ten choosing the latter. Interestingly, of the 30% who opted for the short term prize, just over two fifths (43%) admitted they were simply too impatient to wait five years and almost three fifths (57%) said they didn't know what they would be doing in five years time.
From a financial planning perspective, far more people are impatient. Standard Life's earlier research found that fewer than four in ten (38%) of UK adults plan their finances more than a year ahead. Instead, almost half (45%) plan just a month to 12 months ahead and one in six (17%) do not plan their finances at all.
Standard Life's John Lawson said:
"The question for providers and advisers is how do we encourage more people to plan their finances further ahead, so they remain financially secure - and if they are dreaming of retiring in luxury or heading off on a round the world tour one day, they can make it happen.
"The good news is the poll shows that the majority of UK adults like to look to the future and are willing to wait for a better deal. It's a case of transferring this culture to their financial planning too. Too many people still take a very short term view with their finances and the chances are they are missing out on some great tax efficient deals such as ISAs, pensions and offshore bonds as a result. It would be great if our poll has encouraged those who took part to think about their future plans a little more and how they are going to finance them, but clearly there is still work to be done."
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