Two-thirds of Gen Z feel comfortable discussing their financial situations with family and friends, research has revealed.
The survey by Standard Life, found that 61 per cent of Gen Z are comfortable having these conversations with friends, while 71 per cent are comfortable doing it with family.
This is in comparison to 49 per cent of 35 to 49 year olds and 50 per cent of those aged 55 and over who are comfortable with discussing their situation with friends.
While 61 per cent of 35 to 49 year olds and 69 per cent of over 55s are happy to discuss with family.
The research also revealed that 68 per cent of Gen Z adults said they have turned down social occasions because of their financial situations, with 49 per cent saying they would rather save money towards a financial goal.
The concept of ‘loud budgeting’ became a viral financial trend earlier this year which entailed being open about what people do and don’t spend their money on.
Standard Life analysis has highlighted that someone who began working full-time with a salary of £25,000, and paid the standard monthly auto-enrolment contributions (5 per cent employee, 3 per cent employer) from the age of 22, could accumulate £434,000 by 66.
However, the provider pointed out that if they were able to save extra through applying ‘loud budgeting’ and increasing their monthly contributions by 2 per cent (5 per cent employee, 5 per cent employer) from 22 then they could accumulate £542,000 by 66.
Dean Butler, managing director for retail direct at Standard Life, said: “If those that make additional savings due to loud budgeting channel this towards their pension contributions, they can significantly boost the pension they retire on.
"While there are always trade-offs between short and long-term financial goals, consistently paying into a pension from as early an age as possible and topping up payments can make a massive difference over time.
“Some employers will also match the contributions you make, giving your pot a further boost. If you’re able to save into a pension and increase your contributions above the standard levels, your future self is likely to thank you for it.”
alina.khan@ft.com
