Almost half (46%) of UK bank account holders are saving for the long term, rising to 63% among 25-to 34-year-olds, according to new research.
However, savers can be thwarted in their plans, with 56% admitting that day-to-day spending makes it difficult to save for the long term and 74% saying they’d prefer to pay off outstanding debts first, according to Lloyds Bank’s Quarterly Savings Report.
While 51% of the 2,000 bank account holders polled admit that cash set aside for long-term saving is often spent on unexpected expenses or emergencies, the good news is that 70% still believe they can achieve their long-term savings goals.
Thinking ahead to retirement
Over a quarter of savers (27%) prioritise saving for retirement, but this goes up to 66% among 55- to 65-year-olds. However, only 11% of those in the 34 to 44 age group prioritise retirement in their saving goals.
Younger savers prefer to prioritise saving for their first home, with 51% of 18- to 24-year-olds saving to get on to the property ladder.
“Buying your first home is an important milestone and it’s encouraging that so many young people are focused on achieving it,” says Mark Rawcliffe, head of savings at Lloyds Bank.
“Having a long-term savings goal and focusing on something that you want in five years, 10 years, or in retirement, can help motivate you to achieve it.”