Young people should plan for their financial future now

Cheshire Building Society has said that people in their 20’s are putting their financial futures at risk by getting caught up in the buy now, pay later society.

Moneyfacts.co.uk recently commented that generations have changed, years ago credit was in short supply so people saved to make large purchases. Nowadays, people see credit as a necessity to pay for day-to-day living expenses instead of living to their means.

The office for national statistics shows that life expectancy is increasing and government pension support is on the decline, consequently, it is now vital that individuals protect existing finances with insurance and plan for the future with savings plans and pensions.

A lot of twenty-something professionals do not think about how they are going to manage financially when they hit retirement age, but a spokesperson at Cheshire Building Society warns that delaying setting up a pension or an account can significantly reduce the income that will be available in retirement.

The spokesperson added that these young professionals are also ignoring the importance of things like life insurance.

Twenty-something is an ideal age to start saving, generally these people are earning a regular income and are at the stage where they are looking for their first house or thinking about starting a family.

The spokesperson concluded that if sensible financial plans are put in place now, they will reap the benefits and have more security by the time they reach pension age.

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