Life on Hold

As a nation, we are increasingly putting our lives on hold. We are buying our first home, having babies and getting married later in our lives than ever before.

A recently published ‘Delayed Lifestyle’ article by LV= (Liverpool Victoria) states the average first time buyer is currently aged 38 and is set to rise to age 41 by 2025. The age we get married will rise to 35 for men and 34 for women, whilst the age of mothers having their first child will increase to 29 by 2025.

When asked why, 30% stated affordability was the main reason. Interestingly pensions and saving for retirement was at the bottom of the priority list; just 7% of respondents said saving for retirement was important to them.

We all know we will need a home, we know we must start a pension and we understand that the earlier we start the better, so why do we not take action? Maybe we just don’t consider our future?

The long-term effect of saving for a pension or buying a home as early as you possibly can will have an enormous effect on your later life and retirement.

A little goes a long way, “the problem is not lack of money but a lack of planning” says Scott Swift, Independent Financial Adviser at Oracle Financial Services. “It’s always interesting discussing with clients their plans and goals, and then working with them to produce a plan to save.”

It’s amazing how much we spend day to day on luxuries such as coffee at £2 a cup and lunch £4 a day. Just £6 a day is £2190 a year, that could be a huge contribution to your future!

Some say they will rely on the state or their parents, but both are becoming increasingly unreliable sources of future income. With the state owing over £900 billion we are already seeing cutbacks in pension contributions by steady rises in retirement ages.  I don’t see this getting any better in our lifetime.

We are all living longer and costing the state more. Our parents may need access to the money in their homes for long-term care and the likelihood of a large inheritance may well be a thing of the past.

Is your life on hold? It’s never too late to plan for your future.

Sources:
- LV=
- Financial Advisor Magazine (Julie Bradshaw)

James Ewles wrote this article on the 13th July 2011. The points raised in this article are the opinion of James Ewles only.

James is the Managing Director of Oracle Financial Services.
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