Assetz® News - Today\'s Youth Expects a Lot When They Are Older

Today\'s Youth Expects a Lot When They Are Older

6th November 2005 |

Young adults are planning a celebrity-fuelled lifestyle once they hit their 40s, but their dreams of cosmetic surgery, soft-top cars and villas in the sun are destined to be built on shifting sand.

New research from the ING Direct Money Forum reveals today’s 21-35 year-olds are expecting huge hikes in salaries to fund their glamorous lifestyles, but during their 40s they will fall more than £242,000 short – that’s £24,200 a year.

Today's 21-35 year olds are looking forward to a 150 per cent increase in their current wage (average £20,099) to earn the £50,000 a year required to fund the lifestyles they expect to lead in their 40s. However, predictions* reveal that on average they will bring in just £25,000 a year (a 26 per cent increase).

Therefore, despite hoping for a life that will include luxury cars (24 per cent), second homes abroad (20 per cent), domestic help (27 per cent), regular beauty therapy and plastic surgery (29 per cent) and the ability to take exotic holidays whenever they desire (23 per cent), it is unlikely their finances will allow it.

ING Direct CEO, Lindsay Sinclair, said: “Unfortunately, today’s young adults are in for a rude awakening as there is a huge gap between their expectations and the salaries they will actually be earning and they show no sign of reducing expenditure now in order to save for later in life.”

In contrast, today’s potential retirees (51-65 year-olds) had much more modest expectations when they were starting out, with 80 per cent living the life they expected and 42 per cent over achieving their ambitions.

Their aspirations included visits to the theatre on special occasions (33 per cent), owning a standard car (59 per cent), a UK holiday once a year (25 per cent) and pond in the garden (13 per cent). An ambitious one in 10 (11 per cent) even aspired to have their very own caravan.

According to the Young adults are planning a celebrity-fuelled lifestyle once they hit their 40s, but their dreams of cosmetic surgery, soft-top cars and villas in the sun are destined to be built on shifting sand.

According to the ING Direct report, not only do young adults have high expectations, they also expect to pay a lot for them.

Today’s career starters anticipate spending close to £20,000 on domestic help (cleaners, gardeners, nannies) when they reach their 40s and £22,000 going away on as many luxury holidays as possible.

Lindsay Sinclair continued: “Less than a quarter (23 per cent) of young adults will look to savings to fund their future lifestyles. Rather, close to seven in 10 (69 per cent) career starters plan to pay for their expected lifestyles with huge salary increases - an unrealistic expectation.”

“Our report clearly highlights the need for the younger generation to get serious about saving if they want to achieve their dreams.”

The ING Direct Money Forum report reveals key attitudes delineating the differences between the generations: 51-65 year olds live within their means (51 per cent), saving up for things before buying (35 per cent).

The younger generation, in contrast, are characterised by high confidence that their future expectations will be met (49 per cent) and spend money without thinking of the consequences (14 per cent).anticipate spending close to £20,000 on domestic help (cleaners, gardeners, nannies) when they reach their 40s and £22,000 going away on as many luxury holidays as possible.

“Our report clearly highlights the need for the younger generation to get serious about saving if they want to achieve their dreams.”

The younger generation, in contrast, are characterised by high confidence that their future expectations will be met (49 per cent) and spend money without thinking of the consequences (14 per cent).