Laying the financial foundations

young people are much more savvy and serious about managing their money than you might have expected, new research by Aviva has revealed.

The insurance and savings giant refers to 25 to 35-year-olds as the “foundation generation”.

This is because they are focused on laying the groundwork for their financial future, developing their careers, managing their debt and budgeting their day-to-day spend.

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Analysis of 2,200 young people revealed that 89 per cent have a savings account, 38 per cent have a workplace pension, 12 per cent have a private pension, 41 per cent invest in a cash ISA and 34 per cent have life insurance protection.

Paul Goodwin, director of workplace savings, said: “With so much concern about people not saving enough for their retirement, it’s really good that this group seems to be actively managing its finances and planning for the future.”

He added: “While there is a natural tendency to think that the younger generation will put off saving for retirement to fund their lifestyle now, this research shows that they do actively want to balance their spending with long-term saving.”

The majority – 89 per cent – said they have been affected by the difficult economic climate.