Young now save more pay than boomer parents
YOUNG people are saving more of their income than their parents’ generation, while baby boomers are most likely to save nothing at all.
According to figures revealed today by GE Capital Direct, people aged 18 to 24 manage to save 30 per cent of their monthly income, with savings of 22 per cent for people aged 25 to 34. In comparison, people aged between 45 and 54 manage to save only 12 per cent of their incomes.
Recently, the UK’s savings ratio has dropped, falling to below six per cent of household resources for the first time since 2009, indicating that spenders are becoming more confident about the UK economy. Before the financial crisis and recession began, the ratio was regularly in negative figures.
“Britain’s baby boomers are getting a wake-up call, being sandwiched between boomerang kids and ageing parents, with many finding it difficult to put money aside,” said Sheragh Beirne of GE Capital UK.
Nearly a third of 18 to 24 year olds say they are saving to get on the property ladder, with house prices rising far ahead of incomes and becoming increasingly out of reach for many.
Baby boomers are most likely to admit to not saving at all, with 31 per cent of those aged 55-64 saying that they save nothing.