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!
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!
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