Financial futures need sorting by 26

Ramesh Sharma

April 22, 2006

The study showed advisers believed the three basic foundations of a secure financial future should be in place before the age of 30, with a pension started at 22, getting on the housing ladder at 25, and starting to save for the future at 26.

This compared with the reality that the average age of the first-time buyer was now 34. Likewise, a traditional trigger to sort out finances was getting married, with the average age to marry 29 for women and 31 for men.

The Prudential found that 42 per cent of Brits wished they had reviewed their finances earlier in life to put them in a better financial position. It added the 25-34 year olds felt this more than any other age group.

Roger Ramsden, UK executive director at Prudential, said: “Planning early is key to a secure financial future, but it is never too late to start. For those of us who do seem past it, we can still do an awful lot to improve our financial position, whether that is to pay more into our pensions, save more, or reduce our debts.”

Andy Frankish, managing director of Mortgage Talk, which runs financial coaching for clients, commented: “There is a definite lack of education on the financial side of life and people need to take more time to look at their finances. The ages are lower than I would have thought, but the critical time for financial education is when people go to university. It is a scary statistic that people spend more time watching Eastenders a month than they do on their finances.”

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