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Retirement shortfall

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Autumn of your years

An incredible 23.6 million British adults have a ‘live for today’ attitude and have little regard for the future, it was revealed yesterday (Wednesday).

Just under half of the population either splash out on items they can’t actually afford, are paying minimum amounts on credit cards and live in their overdrafts.

Spending every penny they earn, relying on finance deals and going into the overdraft every month are some of the ways people fritter money away.

Eight in 10 people firmly believe life is very much for living, and there is no point saving for retirement.

And 33 per cent of people work purely to spend money and enjoy themselves.

Andy Lucas, spokesman for Cambridge Building Society, which conducted the study of 3,000 Brits, said: “This ‘Live for Today’ attitude is easy to understand, as people would rather have fun in the here and now than sensibly plan and put cash away for the future.

“This means there is a chance that a huge percentage of people will find themselves with absolutely no money or savings when the reach their older years because they’ve spent it all in their youth.”

The study shows a third of those who haven’t managed to step foot on the property ladder have given up saving for a deposit for their first house.

Four in 10 people spend pretty much every penny they earn, while the average person goes into their overdraft by more than £400 every month.

A fifth of people with credit cards make sure they only pay of the minimum amount every month, and the same percentage have numerous store cards they use on a daily basis.

And when it comes to buying things on finance, 64 per cent of Brits have bought a car on HP, while 40 per cent have treated themselves to a new sofa.

New kitchens or bathrooms, beds or bedroom furniture are some of the other things people buy on finance deals.

The research also reveals 55 per cent of people have no pension scheme set in place for a comfortable retirement and 27 per cent have absolutely no savings whatsoever.

When it comes to living life to the full, 44 per cent of people even admit to eating and drinking whatever they like instead of trying to maintain a healthy diet.

The survey also shows that when it comes to spending every penny they earn, Brits can’t resist stocking up on items for the house, entertainment and gadgets.

Over the next 12 months, half of all people polled plan to spend all available cash on a big holiday, rather than saving it for a rainy day.

Clothes are also a must-have for 46 per cent of people, who plan regular shopping trips throughout the year.

And folk would rather spend their disposable cash on shoes, evenings out, short breaks, tickets to a favourite gig and furniture than depositing it somewhere safe for the future.

Andy Lucas continues: ““It’s worrying how many people are living a frivolous lifestyle eating and drinking what they want and not worrying about the implications on their future health.

“This is a similar attitude that people have towards finances living for today on finance deals and not putting away savings for their future.

“Despite times being hard and many people having this live for today attitude there are “smarter savers” who plan for theirs and their family’s future.

“The Cambridge Building Society makes it easy to save including online accounts that you can open in just 5 minutes.

“If people start saving now it’s easier than they think and will make all the difference in the future.”

There is a chance that a huge percentage of people will find themselves with absolutely no money or savings when the reach their older years because they’ve spent it all in their youth

Andy Lucas, spokesman for Cambridge Building Society

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