Savvy schoolchildren: 1 in 3 plan to save for retirement

Research shows that a third of children are already planning to save for retirement. We take a look at what this means for savers and investors.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Girl and father putting coin into piggy bank, sitting on sofa at home

Image source: Getty Images

Children are the future, and it seems like many of them are starting to think seriously about their own future. Research from Scottish Widows shows that 30% of kids in the UK are already beginning to consider plans to save for retirement. In an ageing world with much uncertainty, this really is thinking ahead!

Young savers

This new research shows that nearly a third of 11- to 18-year-olds are already thinking about having to save for retirement.

These findings may shock some, especially those who believe children should only be concerning themselves with more pressing matters like saving up for a new bike or games console.

It turns out that almost three-quarters of kids in the UK are regularly saving money as well. This is all really encouraging to see.

Attitudes like these coming from the younger generation are even more surprising when compared to a widespread lack of investing among millennials.

Mum’s the word

Another revealing outcome of the research is that children were largely in agreement that their mums are better financial role models than their dads.

Finance has historically been a pretty male-dominated arena, both inside and outside the home.

That’s not the case any more, though. Women are showing men how things are done and the kids on the front line are taking note!

Time to save for retirement

You might think it’s either sensible or laughable that children so young are already thinking about having to save for retirement.

Regardless, with time on their side, the financial possibilities for them are limitless.

The benefit of starting early means these children will be able to make the most of things like compound interest. The earlier you start saving, the better chance you have of building wealth.

The best age to save for retirement

Many of us wish we could turn back the clock for various reasons. Adding more investing years into their lifetime is definitely a dream for some.

However, instead of being green with envy towards these savvy children, we can learn from them. It’s never too late to save for retirement.

Sure, the older you are, the more ramping up you’ll have to do with your investing. Starting yesterday is impossible, but starting today is perfectly viable.

The more you put into your investments, the more you’re likely to get out of them. So it’s vital that no matter your age, you’re using a share dealing account with low fees. Otherwise, these fees will really eat into your retirement fund over time.

It’s also important to take advantage of any tax-efficient ways to save for retirement. This can be through a pension or through making the most of your yearly ISA allowance with a stocks and shares ISA.

Learning from the kids

Children are observant. They’re noticing how poorly some adults manage their money and are deciding to do things differently.

We should all be thinking about our future, no matter our age. There are plenty of simple steps we can take today that will benefit us massively in the long run.

This research is really encouraging to see and should make us all feel hopeful for future generations!

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »