Many young people who have been to university have substantial debt. They face uncertain employment prospects. Pre-pandemic young people were not saving much as the figures below reveal. This is likely to get worse as the economic damage the pandemic caused hits. Allowing young people to build wealth and encouraging homeownership, a form of forced saving, will increase political stability and create a more prosperous society.
Between 2008 and 2017 the percentage of 22 to 29-year old who owned a home declined from 37% to 27%.
More than half (53%) of 22- to 29-year-olds had no money in a savings account or an Individual Savings Account (ISA) from 2014 to 2016.
The gap is wide for those with savings in savings accounts or ISAs (47%). The top 10% of savers had at least £15,000 put away from 2014 to 2016, while the bottom 10% had saved less than £100.
Similarly, the Financial Conduct Authority (FCA) has found that 'half of all 20- to 29-year-old have no retirement resources. Of those age 30 to 39, half have less than £30,000 saved'.
The FCA has found that around 30% of individuals (aged 20–80), about 14 million people have ‘little or no wealth'. The median individual level of wealth is £86,000, of which 19% is pension wealth and 79% is property wealth.
Savings help individuals ride out difficult economic periods without resorting to UK Government support. LISAs help young individuals build wealth by assisting them to get on the housing ladder and build flexible retirement savings.