Younger Brits are twice as likely than older generations to be saving more than a year ago, says Scottish Friendly.
Nearly half (44%) of Gen Z and 43% of Millennials are saving more than they were 12 months ago, compared to 27% of Gen X and 22% of Baby Boomers.
A similar pattern has emerged in investing, according to the research, with 29% of Gen Z and 35% of Millennials investing more than a year ago. This compares to just 15% of Gen X and 5% of Baby Boomers.
It means Millennials are seven times more likely than Baby Boomers to have increased their investment contributions over the past 12 months.
Canada Life said the surge in financial activity is evident in the uptake of financial products, with 76% of Gen Z and 71% of Millennials choosing to open or start using a new savings or investment product between January and March this year.
Among older age groups, just 50% of Gen X and 37% of baby boomers did the same.
Kevin Brown, savings specialist at Scottish Friendly, said: “Far from the outdated myth that many young people are less prudent with their money, what we’re seeing is a generation stepping up and taking real ownership of their financial future.
“Against a backdrop of high living costs, economic uncertainty and competing demands on their income, many young adults are not only saving and investing more but doing so with real purpose and long-term intent.”
However, Brown called for the Government to amend the rules around Junior ISAs to allow family members to open accounts on behalf of a child.
“This would not only ease the pressure on parents but also give the next generation a stronger foundation for long-term financial resilience as they grow up in an increasingly complex world,” he added.
Main image: annie-spratt-Jr8byYZmTTU-unsplash
