Britons are taking an increasingly short term view on their finances, preferring to save for the here and now rather than plan for the longer term, according to Alliance & Leicester’s ‘wealth tracker index’.

While more than one in three people in the UK (35%) plan to save money towards a holiday via their bank or building society, less than half of them (17%) plan to save for their children’s future and less than one in ten people (8%) are saving for their retirement.

Parents will increasingly be challenged to find ways of providing financial support for their children later in life with many items proving too expensive for many young people to fund alone.

Challenging items:

• The increasingly high cost of raising a child.
• Higher education.
• Getting on the property ladder.
• Cost of weddings.

As part of its quarterly study, Alliance & Leicester’s eighth ‘wealth tracker index’ asked a GB representative sample of 2,000 people what they are most likely to save for via their bank or building society.

Key findings:

• The car remains the ultimate status symbol for many people, although for many it takes time to afford to buy a new car. One in ten Britons claim they will put money aside for a new car in the future. Men were nearly twice as likely to save for a car (13%), compared with just 7% of women.
• For many, simply getting on the property ladder is still a priority. 6% of Britons are saving towards a deposit for a house.
• With the average age of marriage now at 28 for women and 31 for men, people have many financial demands before funding their wedding. This is illustrated by the fact that just 3% of Britons plan to put money aside for a wedding.
• With the ongoing issue of the pensions gap, Britons are looking at alternative investments for their future. While 8% claim to be saving money in the bank or building society towards their pension, 15% are saving for home renovations or decoration.

Regional findings:

• The Welsh are the keenest to save to go on holiday, with 49% planning to put money aside for this reason. This compares to those in the West Midlands, of whom just 28% are planning to save money for a holiday.
• The Scots are the most romantic, as 7% claim to be saving money towards a wedding.
• Those in London are the most concerned for their retirement, as 13% are saving towards their pension via their bank or building society. This compares to just 4% of people in Yorkshire.
• Northerners are saving the most for their children’s future, with 23% putting some money aside for their offspring. This compares to the Scots, of whom just 10% are saving money for their children.

Paula O’Reilly, Product Manager for Investments at Alliance & Leicester said:

“As we approach the summer months, it is not surprising that most of us are putting money aside for a holiday. While the findings show that the majority of us are saving for short term eventualities – be it a trip abroad, a new car or home improvements, it is encouraging to see that Britons are becoming making the most of their savings.”

“However, longer term planning should not be forgotten, particularly as earlier research found that whilst many parents would like to provide financial support for their children’s education once they reach 18, many were not in a financial position to do so leaving their children with potentially years of debt ahead of them.”