Young Britons are almost twice as likely to turn to family and friends for financial advice, rather than a qualified adviser, according to research from MRM.
The communications agency’s third annual ‘Young Money’ report showed that 30 per cent of 18 to 25-year-olds would see a financial adviser, compared with 56 per cent who said friends and family. The questionnaire did not raise the issue of paying for advice, but advisers were actually the third most popular option as 34 per cent would turn to a bank or building society.
Barely a third of young people – 35 per cent – are currently saving towards a pension.
The most common reason given was that they could not afford to spare the cash, although a lack of understanding of how pensions work and the belief that retirement planning was not something they needed to worry about yet were also commonly cited as excuses.
Just over three quarters of those who were saving into a pension were using a company scheme, highlighting the impact of auto-enrolment, but interestingly 7 per cent said a family member was making pension contributions on their behalf.
Despite this inactivity, 34 per cent believe they will retire before they turn 65, although 7 per cent anticipate working beyond 80.
Perhaps not surprisingly 36 per cent considered themselves to be in a worse position than their parents; the same number consider themselves less financially savvy too.
