Google: The go-to financial hub for millennials
Swindon, February 14, 2017
- Young people turn to internet search engines before seeking professional advice.
- Confidence in their own ability to sort their financial future and Millennials’ misperceptions about independent advice, such as “being too young” were cited as the main reasons.
- Yet more than half of millennials blame a lack of savings for not achieving their goals.
- Anne Torry, Head of Zurich UK Life shares five financial tips to help millennials with their finances.
Millennials looking for financial advice are turning to the internet first to manage their money, according to research by Zurich UK.
The Set the Right Goals study, which examines saving habits and identifies the nation’s savings gap, found that 15% of millennials are turning to internet search engines, such as Google, to get support their finances before seeking professional financial advice - more so than any other age group. Only 3% of 35-44 year olds and 9% of those aged 45-54 and 55+ respectively, opt for web-based information first.
The online research of over 2,000 UK adults from YouGov, found that one in five (19%) millennials cite confidence in their ability to sort their own financial futures as a reason for not initially seeking professional help. Over a third (37%) feel they do not earn enough to need to speak to a financial adviser, while almost a quarter (23%) said they were too young.
Despite a clear desire to take charge of their financial futures, more than half (56%) of those aged 18-34 blame a lack of savings for preventing them from achieving life goals, such as starting a family or travelling the world. This compares to just 33% of those aged 55 or over.
What is stopping millennials from achieving their goals
- Lack of savings (56%)
- Fear of failure (31%)
- Not knowing where to start (29%)
- Not enough time (24%)
- Fear of change (20%)
Current goals for millennials
- Holiday (31%)
- Buying a house (25%)
- Starting a family (15%)
- Significant family/religious celebrations (e.g. birthday, Christmas, wedding) (15%)
- Putting more into a bank account (11%)
Anne Torry, Head of Zurich UK Life, commented: “It could be all too easy for millennials to look at current political and economic volatility and feel uneasy about what it means for their money, particularly with everything from university fees to getting on the housing ladder squeezing finances. That said, it’s clear there is a certain level of confidence and this generation are proactively seeking help online.
“The internet is a good starting point, but people must also be cautious with the financial information available online, as this won’t be specific to everyone’s needs. There are plenty of online tools available that offer more tailored support, but many millennials are missing out on the benefits of independent financial advice to help them achieve their goals because of misperceptions, such as being too young. Given the instinct for millennials is to go online first, there is a real opportunity for independent financial advisers who can market effectively their services on the internet”.
To help consumers prepare for the future, Zurich has launched ‘Zurich FutureYou’, which provides online tools to help people imagine, plan and manage their own financial well-being. Zurich FutureYou is designed to support people along their financial journey with interactive and methods of planning that are entirely personalised, to ensure engagement with savings matches individual aspirations.
5 financial tips to help millennials with their finances
1. Be clear on what’s coming in and going out
With so many bills to pay each month, it can be difficult to keep up with how much is coming in and out of your account. You can keep up-to-date by creating a spreadsheet or by using one of the many apps in the market that help you do this. Having everything saved to the cloud or a document that lists everything in one place will also help you to spot where you can make cutbacks. If you’re unsure about how to get started then there are many tools available online to help.
2. Don’t spend what you don’t have
Even small over spending – having your eye caught by an extra 25% off or two-for-one deals – can build up and have a real impact over time. While it can be tempting, try not to go into your overdraft or use credit unless absolutely necessary. Aim to cut back and, for example, buy the dress but not the bag, or cook more at home rather than eating out. If you start making these little savings earlier, you will achieve better results in the long-run.
3. Do a financial MOT
Consumers have many financial products from utility bills to car insurance and mobile phone contracts. With many, it can be difficult to keep track of how much you’re spending and when each policy is due to expire. By not knowing when your car insurance is due, you might end up being auto-renewed into a more expensive contract that can then be difficult to change at a later date. To save even more, use price comparison sites that compare all providers and give an overview of the best prices. The money saved could be used for other essentials or even put into a saving account.
4. Make the most of tax efficient savings
Saving for your pension may not be something you are thinking about now, but if you don’t you could be missing out on free money as the government essentially gives you money every time you pay in. For example, if you’re 30 and start saving the equivalent of just £10 a week more into your pension now, by the time you’re 65 you’ll have £48,400 more stashed away (equivalent to £20,400 after inflation) – and that’s before you factor in any added employer contribution you unlock. In addition, each year we also all have over £15,000 worth of tax free savings capacity in ISAs which can often offer attractive returns.
5. Think about your future
Do you know how much you need to save each month to achieve your ideal retirement? If not, don’t fear, you’re not alone and there are tools available to help. With interactive tools and personalised methods of planning, you can match savings plans with individual aspirations. Some even help you to visualise what your future could look like - www.futureyou.zurich.co.uk/life-planner.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2073 adults. Fieldwork was undertaken between 25th - 26th October 2016. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+)