Not only this, but more than a quarter of those asked also advised the younger generation to have fewer children in order to be more financially secure in their retirement.
As well as slashing the cost of the big day (60%); other savings advice from beyond retirement is to shop around with every penny (57%), drop designer labels (52%), don’t use credit (48%) and spend less on cars (45%).
Despite the old adage that “you should worry less in life”, this advice was only given by one in ten retirees to the younger generation when it came to their finances.
What and what not to chop!
With the average cost of a wedding standing at £18,5001, cutting this cost by half (or more) could provide the happy couple with a significant lump sum to start a pension fund and lay the foundations for future financial security together.
Another potential financial downfall of the young is spending money on designer labels that are often twice the price of non-designer clothing.
With the average interest on unsecured debt paid annually by each UK household standing at approximately £2,4672, and a second car costing on average £5,8693 to keep on the road each year, heeding advice from beyond retirement could go a long way to helping the younger generation cut costs and save more towards the future.
Even taking on board some of this advice, and saving a modest amount each month could make a big difference to a young couple’s income in retirement.
For example, a 30 year old male saving £150 a month on designer labels, cars and by shopping around and contributing this to a pension instead, could benefit from £4504 income per month, from 65 throughout retirement, in addition to any state pension.
His wife saving the same amount from 30 to 65 would enjoy £4154 per month.
Clive Bolton, at retirement director at Aviva said:
“The voice from beyond retirement is clear. Retirees are advising the younger generation to spend less today to save more for the future. Our findings across all age groups showed that only 8% of consumers felt that they would be at their most financially secure in retirement, with this dropping further to just 2% after the age of 70.
“Despite this stark recognition by the public, many still delay making plans for their later years and perhaps understandably, focus their spending on their day to day life. It is crucial that as well as enjoying their youth, the younger generation also plan for their future.”
