Despite often being reported as the generation that doesn’t understand the concept of money, millennials actually came out on top as having the highest household income, putting most away into their savings and were also amongst those feeling the most financially secure.
Those aged 65 or over were found to be the most likely to consider themselves financially secure (65%), however, the millennial market followed closely as the generation feeling most comfortable with its financial position. According to the research, 62% of those aged 25-34-years-old claim to feel financially secure, compared to just 46% of those in the 55-64 age bracket.
Highlighting a clear divide between millennials and other generations, the research shows that as a nation, our peak income earning age is between 25 and 34, with more than a quarter (26%) of this age range achieving a household income of £75,000 - £100,000 every year.
When it comes to financial goals, making home improvements was revealed as the top priority for UK adults by far, whilst saving to buy a property didn’t make the nation’s top five.
The top five financial goals are:
1. Making home improvements (36%)
2. Taking the holiday of a lifetime (19%)
3. Long term travelling (17%)
4. Getting a new car (16%)
5. Getting a new item of tech (i.e new smartphone) (13%)
Whilst home improvements are the top priority nationwide, the data tells a different story for those aged 25-34-years-old, with one in three (33%) in this age range prioritising long-term travel above all else - almost twice the national average of 17%.
For those aged 18-24 years old, getting onto the property ladder still appears to be the focus, with 29% selecting this as their top goal at the moment - more than twice the national average of 12%. However, with the majority of this age range only putting away less than £50 per month, it’s no surprise that one in ten don’t think they will achieve their goals (10%), with a further 30% predicting it will take over two years.
The desire to travel could also explain why those aged 25-34 are putting the most away each month, saving on average £225.45, making average yearly savings of £2,705.40, which is higher than any other age group.
Age Average monthly savings
18-24 £135.98
25-34 £225.45
35-44 £178.00
45-54 £150.60
55-64 £121.93
65+ £145.70
(Age vs monthly savings.)
Overall, the research found that the average amount being put away for a rainy day each month is £159.08, however, over a third of people (36%) are saving less than £50 per month, including almost a quarter (24%) of 18-24-year-olds.
Vincent Reboul, Managing Director at Hitachi Personal Finance added: “It’s interesting to see that millennials feel so financially secure, as well as achieving the highest household income and saving the most money. It’s encouraging to see that more than a third believe they will achieve their financial goals within the next year (37%), however, more than one in ten people (11%) can’t see themselves achieving their goals in the next three years, whilst 17% believe they will never achieve them. This data suggests that we all need a little helping hand to work towards our goals, whether that’s finance options or simply some guidance on how to save more money each month.
“The data clearly shows an ongoing trend for people to work on the home they’re in, rather than investing in a new one. Undergoing home-improvements provides the opportunity to mould your home exactly how you want it, creating the perfect space for you and your family. Of course it can also add value to your home, as well as ensuring that you’re keeping up with the housing trends on the market, making for a lucrative investment if the aim is to sell on after a few years. What stood out most of all however was the tendency for the millennial generation to value experiences over possessions or investments, suggesting a desire to spend their money on creating memories rather than material things.”
To read more about financial security across the generations
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