Britons don't realise need for financial planning until the age of 28

The Momentum UK Team 04 September 2012

Twenty-eight is the average age that British adults reach before they realise the need for financial planning according to a report by Bright Grey.

The Financial Safety Net report suggested that nearly half of adults aged 35 and over reached, on average, the age of 28 before they realise that they need a to plan ahead financially by taking steps such as saving for a deposit on a home or into a pension scheme.

Of those surveyed, 4% said that they only realised financial planning was needed at age 50 or over. A further 5% did not believe that they need long term financial plans in place.

Roger Edwards, managing director at Bright Grey, said:

"28 is around the age that for many, they may take key lifestyle choices such as buying a first property, getting married or having a child.

"With these changes can come responsibility, and this means waking up to the very real need to have finances in order. Unfortunately the ‘dream' of getting very rich in later life happens to precious few, and for the rest of us, maintaining a healthy financial lifestyle is critical."

High expectations

In spite of an apparent lack of long term financial planning until later on in life a separate report by JP Morgan Asset Management found that 8 out of ten 16 year olds said that they had savings, with an average amount of around £1,743 in the bank.

27% of 16 year olds surveyed expected their first salary to be around £22,600, and the same number expected to own their first home by the age of 25, despite the average first-time buyer age of 30.

Financial preparation for the future could have benefits from an early age according to Keith Evins, Head of UK Marketing at J.P. Morgan Asset Management. Evins said:

"As parents it's important we do as much as possible to encourage and support the dreams of our children. One crucial way to do this is to help our teens prepare for the future financially."