Why the Over 65s Are Enjoying a Better Social Life than Millennials

24.07.2019 by Jim Ker

Millennials: already thinking you should probably get out more? Perhaps you’re spending one too many evenings holed up on the sofa getting stuck into a boxset? Or maybe you’re stashing any extra cash you’d have spent on a takeaway and making use of your leftovers or cooking homemade meals?

Whatever your current situation, you should consider this: your grandparents’ social life could be better than yours.

Such information isn’t coming directly from the team here at Kingston Unity, either. Instead, it’s highlighted in a rather enlightening iNews feature, which suggests those in the 65 and over age group spend ‘an extra £42 on recreation’.

“Young people today are spending less in cash terms on alcohol and tobacco, down £4 to £10 a week” iNews reports, with the new ‘culture vultures’ being those of retirement age.

A Shift in Spending Habits
Interestingly, while young people are spending less in cash terms on alcohol or tobacco, pensioners’ spend has risen from £2 to £11 per week.

What’s responsible for this shift in spending habits then?

“Partly, they reflect that young adults’ incomes have performed more poorly than pensioner incomes over the last two decades.” says iNews, “This is due to the youth-focused pay squeeze following the financial crisis, and billions of pounds of welfare cuts for working-age families.”

Of course, housing costs are to blame too, with younger families spending a higher share of their income on living costs. Elsewhere, rapid wealth increases mean older households can increasingly draw on their assets to support their day-to-day spending, continues iNews, “especially since new freedoms introduced in 2015 have opened up access to pension pots.”

The shift needs to be addressed – and soon – says Laura Gardiner, who penned the iNews piece. “So alongside Brexit, turning this picture around has to be a top priority for whoever the next resident of No.10 is – especially if they plan on winning back younger voters in the next election.”

Saving Little and Often
Now more than ever, it’s vital that millennials and those who form part of Generation Z (anyone born between the mid-1990s and mid-2000) consider putting money aside to help secure their financial future.

According to ThisisMoney, over a third of people in the Gen Z category are already one step ahead, believing that ‘saving little and often is important’. With £1000 or more in their savings account, they’re planning a more secure future by taking stock of their finances.

Interestingly, the article states that ‘70% of Gen Z check their finances daily, compared to 61% of millennials”. The insight comes as a result of a recently commissioned survey from a peer-to-peer lending company.

The ease of mobile banking was cited as fundamental in the financial behaviours of Gen Z survey participants.

“As Gen Z have grown up surrounded by tech, it is no surprise they have embraced mobile banking more than other generations.”

One sticking point, though, for young adults who haven’t yet got into a firm saving pattern, is this: schools could do more to educate kids about the importance of good financial management, including understanding how taxes work, the effect of debt and the importance of saving for a rainy day.

A piece on The Times website states that an influential YouTuber (Sophie Clough) posted this via Twitter: “I will never understand why schools don’t teach you stuff like this”, alongside a photo of the cover and contents page of a book called: ‘Money, a User’s Guide’.

The guide covers ‘the formerly unglamorous subjects of how to buy a home, how to budget and how to save, as well as everything you need to know about pensions, tax and insurance if you are under 40.’ Staggeringly, her tweet received nearly 300,000 likes and sparked a debate on Twitter which is no doubt ongoing.

While finances might sometimes be tight – and knowledge about money and savings may be limited for Sophie’s generation – another key point gleaned from the survey featured on the iNews site is this: ‘a massive 73 per cent of millennials and 70 per cent of Gen Z said they were happy to talk about their finances in general.’

Financial Transparency
It’s clear that financial transparency is important – and for both millennials and Gen Z participants. On top of that, the opportunity to save ‘little and often’ is also appealing.

Customers choosing Kingston Unity can rest assured that we’ve built our business based on transparency. Run for the benefit of you – and not for shareholder profit – our members are dotted throughout the UK and are enjoying a range of tax-efficient savings and investment options.

We’ve been doing what we do since 1840 and we’ve always invested exclusively for our members. Chat to us today about how you can secure your own financial future. After all, even saving a small amount of money per month can go a long way.

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Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

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You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

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Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

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Most types of insurance business are covered for 90% of the claim with no upper limit.