It may be normal for the older generation to worry about the younger ones, but it would seem there is plenty of cause for concern today when it comes to money.
We asked 2000 over-65s about their concerns for their children and found that a lack of savings and the affordability of housing appear to be amongst their biggest worries. Over 40% were concerned that their children wouldn’t have enough money saved for retirement, while over a quarter (27%) felt their children might not be able to own a home.
The fact that interest rates have now been frozen at record lows for years doesn’t help, as there’s little to encourage people to save. More than a quarter of over 65s were concerned that their children would struggle to pay household bills; a reflection on the high cost of living in the UK.
And acting on this relatively concerned response, we were keen to hear what advice the older generation had for their successors. When it comes to money, how can you help alleviate your parents’ concerns?
1. One of their top recommendations (from 51%) was to live within your means: Taking time to sit down and plan your budget for the year could highlight some obvious areas where you could save money. By looking at last year’s outgoings, you can plan your spending (and saving) for the year ahead.
2. Over 65s also encourage their children to save into a pension or savings account: With recent government legislation coming into effect across the country, making enrolment in company pensions automatic, we’re now all being encouraged to plan ahead for our futures. There are also some good savings accounts available at the moment, with some banks offering good interest on fixed-term accounts.
3. Be careful with credit cards: Credit cards could be beneficial if you’re planning a particular purchase or if you’re looking for some extra security online or abroad. But credit cards can also create unnecessary debt so it’s important to decide whether a credit card is the best option and to compare deals to get the best rates available. And remember, if you do take out a credit card you need to make sure you can afford to repay the debt and can always afford the minimum repayments.
4. Taking out a life insurance policy might help give peace of mind for your family: If you have a life insurance policy, you can be assured that, if anything happens to you, your policy would pay out a lump sum to your spouse or family. You can set the amount that you’re insured for, from a few thousand pounds up to hundreds of thousands of pounds, and make sure that your family can remain in their home and afford to live if you were no longer there to support them.
And if any of that sage advice has landed with you, we’re here to help. You can compare savings accounts, credit cards and life insurance with us and start addressing some of the older generation’s concerns today.