New Year resolutions could help Brits retire almost a decade earlier than planned
New survey reveals that cash-strapped Brits are prepared to give up takeaways, nights out, takeaway coffees, TV subscriptions and more in 2023.
A new survey by Unbiased has revealed that Brits are determined to tackle the Cost of Living Crisis head on and plan to make financial New Year’s resolutions this year that could enable them to retire almost a decade early, save a nest egg, put a deposit on a home or achieve other financial goals.
The survey reveals that
- 47% of Brits plan to give up takeaways
- 40% will stop eating out and going to the pub
- 30% intend to use their car less (an average saving of £103 per tank of petrol)
- A quarter of Brits vow to give up subscription boxes (saving £15 each on average)
- 32% say they will give up buying takeaway coffee (saving an average of £25 per month)
- 22% plan to give up drinking at home (saving an average of £36 per month)
- Only 27% of Brits are debt free
Unbiased is a financial services platform that has helped more than 10 million people make confident financial decisions. Their survey shows that Brits could save up to £500 per month by making money-saving lifestyle choices and with expert financial advice, the savings could grow to a considerable pot.
If a 30-year-old put £500 per month into a pension for 30 years, assuming government tax top-up and 5% compound returns, they would amass a fund of £511,787 – enough to retire at 60, or earlier.
23% of the UK plan to cancel their gym membership, saving an average of £40 per month, whilst 22% say they won’t buy tickets to sports matches. With the average Premiership match ticket costing £125, that’s a considerable saving.
Unbiased has this advice, “Financial New Year’s resolutions are a priority this year, but rather than seeing it as a series of sacrifices, look at it as a way of making positive changes to lay the foundations for a more secure future. Taking control of your budget and seeking good financial advice can be life-changing.”
Almost a quarter of the population says that they plan to save by not going to festivals. With a 2023 Glastonbury ticket costing £325 + booking fee and the long weekend at the festival adding a few hundred pounds to that amount, experts at Unbiased suggest that this lump sum could be directed towards financial goals.
The Unbiased research also shows that 66% of Brits spend money on subscription services we don’t use, and this is as much of a problem for pensioners as it is for 18-29-year-olds.
Unbiased says “Even a small saving can make a big difference if you make it habitual. Do you need all those subscription services? Set up a transfer to a savings account of a small amount (try for £20 or £30) from the account your salary goes into. Set it for the same day your salary goes in so that you are putting something away before you get a chance to spend it. Small but regular amounts will soon build up.
“ Grandparents might consider cancelling unwanted subscriptions and paying those regular amounts into a grandchild’s ISA – those contributions will grow, and the grandchildren won’t pay inheritance tax on them. For example, a grandparent who gifts £1,000 per year to a ten-year-old child into a 5% savings account would be accumulating £34,719 for them for their 30th birthday. For a full financial health check to see how much more you could save each month, talk to an independent financial adviser. With more than 27,000 trusted and regulated financial advisers, a platform like unbiased.co.uk is a great place to start.”
The survey shows Brits are acutely aware of their finances at the moment, with 72% saying they know what their bank balance, incomings, and outgoings look like on a daily basis. “This is really encouraging,” say Unbiased. “You have to know and understand your finances in order to make a positive change.”
Unbiased recently entered into a two-year partnership with Samaritans to help reduce the negative impact of money worries on the nation’s mental health. Samaritans are accessible at all times over the holiday period and 2023, for everyone in need.