Accumulating wealth may not be the big topic of discussion in the retirement sector at the moment, but 18-54-year-old UK savers are worried about their long-term security.
RBC Wealth Management commissioned a survey by The Economist Intelligence Unit (EIU), with responses from 411 high net worths in the UK, which were split up into younger affluent individuals (18-54) and older individuals (55+).
It found 74% of the younger group are confident about reaching their financial goals, however 64% are concerned about their long-term financial wellbeing.
Just 32% of older respondents feel that future generations will have greater opportunities to generate wealth.
Some 71% of younger respondents think that their beliefs about wealth are very different to those of their parents, only 46% of older respondents felt the same.
Differences
Ross Jennings, head of sales and relationship management at RBC Wealth Management, said: “We are seeing a notable shift in the inter-generational dynamics and this is reflected in the way different peer groups approach wealth accumulation and preservation.
“While younger generations are confident about their ability to generate wealth – thanks in part to greater entrepreneurial opportunities offered by technology and education – they are showing a high degree of sensibility in prioritising saving for retirement among their most important financial goals.
“At the same time, older generations are challenging long-held beliefs around inheritance obligations as cost inflation and longer life expectancy makes them reconsider their legacy transfer.”
Priorities
RBC’s survey also found 42% younger respondents see having enough funds for retirement as the most important financial goal.
This was followed by increasing their wealth and being able to retire at an early age.
| Which of the following are your most important financial goals? (Could pick more than one) | Younger respondents |
| Saving for retirement | 42% |
| Increasing my wealth | 30% |
| Being able to retire at an earlier age | 30% |
| Having enough to support my lifestyle | 25% |
| Protecting my wealth for my future well-being | 22% |
| Saving for my children’s education | 20% |
Source: The Economist Intelligence Unit (EIU)
Barriers
The survey also asked the over 55-year olds what their greatest obstacles were to reaching their financial goals.
The main barrier was the rising cost of living, which was closely followed by the fact they did not come from a wealthy family.
| What have been/are your greatest obstacles to reaching your financial goals? (Could have picked more than one) | Older respondents |
| Rising cost of living | 26% |
| Did not come from a wealthy family | 25% |
| Poor investment performance | 18% |
| Competing financial priorities | 17% |
| Having to take care of my family | 14% |
| My own health/healthcare expenses | 14% |
Source: The Economist Intelligence Unit (EIU)
