When asked what they would have done differently with their money, the over 60s all give the same answer. A precious lesson for the youngest.
When we get older, money often becomes an increasingly present concern. Medical costs are increasing, income decreases with retirement, and prices are constantly climbing. Result: many seniors find themselves having to make difficult choices. No more outings at the restaurant, family weekends or small gifts to grandchildren. Some can no longer even complete their ends of the month and fear above all to become a financial weight for their loved ones. This situation generates constant stress that can spoil what should be the most beautiful years of their lives.
This reality becomes particularly cruel when retirement pensions are insufficient to maintain the expected standard of living. A study by Nottingham Building Society among more than 2,500 British reveals alarming figures: 42% of over 60s are concerned to see their savings running out, almost twice as the 18-24 year olds. Even more worrying, 45% of them draw from their reserves more than they would like because of the increase in the cost of living. A situation that French seniors also experience, faced with the same difficulties with inflation and pensions that are struggling to follow.
Faced with this situation, a regret dominates all the others among those over 60: 33% of the sixties would have liked to start saving earlier, a percentage that climbs to 41% among the octogenarians. “The message of those who are in the last part of their lives is clear: starting to save earlier, putting money as a constant way and being disciplined with your expenses can make a real difference”explains Harriet Guevara, savings manager at Nottingham Building Society.
The advantage of starting young people lies in a formidable financial mechanism: interests. “Even small regular contributions can add up over time and make a notable difference”, underlines the expert. Indeed, 1000 euros placed on a savings plan or on the stock market at 25 will have been forty years to fruit and multiply, while the same amount put aside at 50 years will only be fifteen years ahead of it. This difference in time can represent thousands of euros apart at the time of retirement. Harriet Guevara recalls it with accuracy: “For young savers, this research is a reminder that the habits formed now will bear fruit in the future. Building a regular savings habit, even modest, can reduce stress, improve sleep and give people greater control over their money.” Precious advice that it is better to follow before it is too late to fully harvest the benefits!
