A report by IRESS has found that 24% have no long-term plans for their finances.
Of the 76% that do have plans, saving into a pension (19%) and saving for a deposit on a property (16%) top the list of financial priorities.
The report found that when it came to short-term saving plans, the biggest driver for consumers was the level of available income, rather than tangible savings goals.
Over a third (38%) said the main factor affecting their short-term savings was simply the amount of disposable income they had. However, the next most popular choice for short-term saving include holidays (31%) and saving up for big purchases such as a car (25%). More than one in ten (13%) said they didn’t save at all.
The research found that short-term saving decisions were influenced by advice given by friends and family members. One in five (22%) of those aged between 18 and 24 cited this as a reason for saving. This fell to 10% of 25 to 32-year-olds and to 6% of those aged 35 to 44-years-old.
IRESS managing director Simon Badley said: “For nearly one in four people to admit to having no long-term financial plans is a concern. Daily spending, such as bills, can often take over. How much people feel they can set aside is often dictated by the amount of money they have left at the end of the month.
“Financial advice plays a central role in ensuring consumers are making the most of their money, and knowing which immediate priorities to focus on to ensure longer-term goals don’t get overlooked.”
