Get Ionto The Property Ladder By 26 Or You Never Will

[lostinrent]

A new study has revealed that the nation’s financial advisers believe that if an individual hasn’t put the basic building blocks of financial security in place by the relatively tender age of 26, they could face a lifetime of struggling to catch up.

The findings may come as a wake-up call to Britons who can’t or won’t address their financial futures until they see grey hairs start appearing on their head, said the insurer Prudential.

To be specific, the advisers think that starting a pension should happen at age 22, buying your first house should happen at age 25, and starting to save should happen at age 26.

However, while this is the view of those people whose job it is to make sure people live in an idyllic financial situation, in reality things look rather different. The average first time buyer is aged 34.2 Similarly, the average age to marry – which is a traditional trigger to sort out finances – is 29 for women and 31 for men.

Just under half of 1,000 consumers questioned wish they had reviewed their finances earlier in life, so they would be in a better financial position, with 25-34-year-olds feeling this more than any other age group.

Roger Ramsden, Prudential UK executive director said: "At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring. For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances."

Unfortunately many people do look back and regret it. The Pru study found that 42% of Britons wished they’d reviewed their finances earlier in life to put them in a better financial position.

Planning early is key to a secure financial future - but it is never too late to start, adds Roger Ramsden. "For those of us who do seem past it, we can still do an awful lot to improve our financial position, whether that is pay more into our pension, save more or reduce our debts," he said.

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

[Time to Emigrate]

A new study has revealed that the nation’s financial advisers believe that if an individual hasn’t put the basic building blocks of financial security in place by the relatively tender age of 26, they could face a lifetime of struggling to catch up.

The findings may come as a wake-up call to Britons who can’t or won’t address their financial futures until they see grey hairs start appearing on their head, said the insurer Prudential.

To be specific, the advisers think that starting a pension should happen at age 22, buying your first house should happen at age 25, and starting to save should happen at age 26.

However, while this is the view of those people whose job it is to make sure people live in an idyllic financial situation, in reality things look rather different. The average first time buyer is aged 34.2 Similarly, the average age to marry – which is a traditional trigger to sort out finances – is 29 for women and 31 for men.

Just under half of 1,000 consumers questioned wish they had reviewed their finances earlier in life, so they would be in a better financial position, with 25-34-year-olds feeling this more than any other age group.

Roger Ramsden, Prudential UK executive director said: "At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring. For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances."

Unfortunately many people do look back and regret it. The Pru study found that 42% of Britons wished they’d reviewed their finances earlier in life to put them in a better financial position.

Planning early is key to a secure financial future - but it is never too late to start, adds Roger Ramsden. "For those of us who do seem past it, we can still do an awful lot to improve our financial position, whether that is pay more into our pension, save more or reduce our debts," he said.

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

[George]

waaa waaa wa.

[Time to Emigrate]

And what Estate Agent's are you from?????

[Guest Cletus VanDamme]

Of course these financial advisors want you to be in pensions and property before you're out of your nappies. They want your commission! The earlier you start your pension, the more commission they receive (typically a lump sum on you joining the scheme and then a smaller amount each year you pay into it). Similarly for life insurance, critical illness cover and so on.

[teddyboy]

A new study has revealed that the nation’s financial advisers believe that if an individual hasn’t put the basic building blocks of financial security in place by the relatively tender age of 26, they could face a lifetime of struggling to catch up.

The findings may come as a wake-up call to Britons who can’t or won’t address their financial futures until they see grey hairs start appearing on their head, said the insurer Prudential.

To be specific, the advisers think that starting a pension should happen at age 22, buying your first house should happen at age 25, and starting to save should happen at age 26.

However, while this is the view of those people whose job it is to make sure people live in an idyllic financial situation, in reality things look rather different. The average first time buyer is aged 34.2 Similarly, the average age to marry – which is a traditional trigger to sort out finances – is 29 for women and 31 for men.

Just under half of 1,000 consumers questioned wish they had reviewed their finances earlier in life, so they would be in a better financial position, with 25-34-year-olds feeling this more than any other age group.

Roger Ramsden, Prudential UK executive director said: "At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring. For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances."

Unfortunately many people do look back and regret it. The Pru study found that 42% of Britons wished they’d reviewed their finances earlier in life to put them in a better financial position.

Planning early is key to a secure financial future - but it is never too late to start, adds Roger Ramsden. "For those of us who do seem past it, we can still do an awful lot to improve our financial position, whether that is pay more into our pension, save more or reduce our debts," he said.

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

So what you are saying is the PRUDENTIAL are saying put money into a pension at 22.

Another soft-shyte attempt to SCAREMONGER people into lining their pockets. We are the ones called SCAREMONGERS!!! My **** we are - we are the ones who are astute and dont get taken in by this BS!

TB

[George]

http://www.housepricecrash.co.uk/forum/ind...topic=26337&hl=

quick get on it quick quick.

[DonnieDarker]

"To be specific, the advisers think that starting a pension should happen at age 22, buying your first house should happen at age 25, and starting to save should happen at age 26."

Read that again.

"buying your first house should happen at age 25, and starting to save should happen at age 26."

Interesting logic...buy a house and then a year later start saving money. That's a novel way of getting a deposit together.

Jesus wept!

[othello]

Dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

Could you enlighten us as to why you do not think prices will crash?

[sm9ai]

lol, thats funny. Give it another 10 or 20 years of this and it will be get onto the Property Ladder by 16 or you never will.

[RichB]

Well, in that case all the folk coming out of university into high rent, high travel cost, high bill and high debt payment scenarios are going to be a bit stuffed then.

[surfcat]

Yeah I must say, given I was still doing my phd on my 26th birthday I'm gonna be fried. I mean 4 whole years late in starting a pension. Where exactly did they want me to get the money from, my student loans?

[Yankee]

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

What a ridiculous leap of logic. I agree that young people should start saving for retirement at an early age (compound interest is a miraculous thing), but how and where you put that money is extremely important. And you must pay attention to bubbles! A middle-aged friend of mine inherited a lot of money in the late 1990s and put it in the stock market right before the crash. She lost half of it and still hasn't recovered it. She says that now she doesn't know if she'll ever be able to retire. Years ago a relative of mine bought a lot of gold at its then-peak and lost a bundle as well.

Buying a house (or anything) at the top of a market is madness.

[Seamaster]

I mean 4 whole years late in starting a pension.

Sadly, four years missed early on in your financial life is a big deal once you understand the miracle of compounding.

[Fancypants]

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

your concern for our wellbeing is truly touching, and duly noted.

However - my legs aren't long enough to get on this particular ladder. Bit of a financial midget, I suppose.

and nor am I a burden on my parents, or an idiot STR. Lost in rent perhaps... but I don't feel very lost. Every day I come closer to finding financial nirvana... while my mortgaged peers slip further down through the levels of the inferno.

[bachelor]

A new study has revealed that the nation’s financial advisers believe that if an individual hasn’t put the basic building blocks of financial security in place by the relatively tender age of 26, they could face a lifetime of struggling to catch up.

The findings may come as a wake-up call to Britons who can’t or won’t address their financial futures until they see grey hairs start appearing on their head, said the insurer Prudential.

To be specific, the advisers think that starting a pension should happen at age 22, buying your first house should happen at age 25, and starting to save should happen at age 26.

However, while this is the view of those people whose job it is to make sure people live in an idyllic financial situation, in reality things look rather different. The average first time buyer is aged 34.2 Similarly, the average age to marry – which is a traditional trigger to sort out finances – is 29 for women and 31 for men.

Just under half of 1,000 consumers questioned wish they had reviewed their finances earlier in life, so they would be in a better financial position, with 25-34-year-olds feeling this more than any other age group.

Roger Ramsden, Prudential UK executive director said: "At the bright young age of 26, many youngsters are not yet fully aware of the benefits that starting a pension and savings scheme can bring. For one thing, few are aware of the significant tax breaks of a pension. It is only later that they look back and wish they had acted earlier to maximise their finances."

Unfortunately many people do look back and regret it. The Pru study found that 42% of Britons wished they’d reviewed their finances earlier in life to put them in a better financial position.

Planning early is key to a secure financial future - but it is never too late to start, adds Roger Ramsden. "For those of us who do seem past it, we can still do an awful lot to improve our financial position, whether that is pay more into our pension, save more or reduce our debts," he said.

dont be a mug and stay lostinrent, get on the ladder and stop being a burden on your parents or an idiot STR waiting for the great crash that is not happening

I'm sorry, but I really don't understand this.

The only way house prices can continue to rise is if more and more money is pumped into the market by the banks or other lenders and IR's will stay the same forever. The banks will lend money if they think it can be paid back, thus if wages dont increase it will be impossible to pay back the amount borrowed if prices continue to rise. Also at some point more homeowners will have to sell their houses to more non homeowners who won't be able to meet the crazy asking price and the consequence of that is the vendor will have to lower the price to a level that can be met by the buyer to ensure a sale.

The probability that rates will stay at 4.5% forever and the banks keep lending more and more money is at best impossible.

[surfcat]

Sadly, four years missed early on in your financial life is a big deal once you understand the miracle of compounding.

Yes, but these advisors are all very happy giving common sense financial advice, but never seem to consider those in different circumstances. Perhaps you could suggest where, at age 22, I would have found this money?

[Yankee]

Yes, but these advisors are all very happy giving common sense financial advice, but never seem to consider those in different circumstances. Perhaps you could suggest where, at age 22, I would have found this money?

Even investing 25 pounds a month at age 22 is a great idea, again due to compound interest. I wouldn't hand it off to a financial advisor or broker, however. Young people should do their own homework.

[boom_and_bust]

Hi,

Figures from CML have shown house repocessions creeping up and up over the past couple of years and predominently hitting the 25-40 age groups, over stetched by historically high house prices. The average age of the FTB is at a record high at mid-thirtees, the building socities continuously produce reports that 90 odd % of properties are out of the financial reach of FTB's, presumably the remaining 5-10% who are hauling themselves onto the ladder are those borrowing 6-10 times income mutliple, interest only mortgages (that do not actually pay off the mortgage and so could leave you in a dire, future position, particularly if house prices were to fall or stagnate sufficiently below the general inflation level), some studies have even shown people hitting 100-120% expenditure out of annual income each year, accounting for the very low savings rates in the UK - house prices and taxation the biggest culprits, so pensions have become a virtual impossibility on the back of huge mortgages.

Just last week the IMF reiterated its warning that excessive house prices in the UK are the biggest short-term and long-term threat to the economy and economic instability here, OCED reports have put UK house prices amongst the highest in the world. And if we are in a low inflation environment now under Gordon Brown, with the BoE vowing to keep wage inflation within it's inflation target of 2% per anuum - and say house prices were to continue rising at 5-10% per year for the future - well, you're stuffed either way unless you can comfortably afford a house you want now that is big enough for you not to need to trade up in the future and assuming that your work is stabe enough for you not to need to relocate at some stage. And assuming that the deliberate Labour policy of house price inflation will not all unravel in the near future.

Have a read of the WiKi - there are lot's of interesting links there that can get you thinking more deeply about the housing market and what it means to you personally.

Edited April 24, 2006 by boom_and_bust

[Seamaster]

Yes, but these advisors are all very happy giving common sense financial advice, but never seem to consider those in different circumstances. Perhaps you could suggest where, at age 22, I would have found this money?

At 22 I had a part-time job in addition to my first post-graduation McJob, working every Friday and Saturday night, all day Saturday and Sunday afternoon. Unfortunately, I followed the George Best approach to money. ("I spent a fortune on birds, booze and fast cars. The rest I just wasted.")

I wish I'd saved even the price of one night on the p¡ss back then. I'd be laughing.

You live and learn.

Edited April 24, 2006 by Seamaster

[Ignorant Steve]

I saved loads of money when I was early twenties. I was, and am, a boring tosser.

[MarkG]

Sadly, four years missed early on in your financial life is a big deal once you understand the miracle of compounding.

And by the miracle of inflation, that 250,000 pounds will buy you a cup of coffee when you take it out of the account when you retire.

[Fancypants]

I saved loads of money when I was early twenties. I was, and am, a boring tosser.

you're not boring Steve

[Guest Bart of Darkness]

Could you enlighten us as to why you do not think prices will crash?

(1) He doesn't walk on the cracks in the pavement on Tuesdays in months that end in "Y".

(2) err... that's it.

[boom_and_bust]

And by the miracle of inflation, that 250,000 pounds will buy you a cup of coffee when you take it out of the account when you retire.

Hi,

Exactly, the world is too complicated a place, the future too uncertain to just make seeping generalisations. Houses were not a very good investment during the seventies in relative terms when general inflation was very high. Houses were a very good investment ten years ago and all through the recent years of low general inflation and government induced high house price inflation. Many people saved into pension schemes and saw in recent years those pension firms or indiviual, employer based schemes renegade on their commitments, house prices fell massively in the early ninetees. Assess risks, spread your investments, don't put all your eggs in one basket. If getting onto the housing ladder means, for you as an individual, stretching to massive income mutliples on an interest only mortage, that would seem a risky stratergy in the short and medium term. Of course, that's why every so often the Halliwide splash articles across the media about how 'in the long term, house prices always go up' or 'houses prices risen 100% in the past five years'. On a snap shot basis or on a long term, historical view, that is correct. In the short to medum term, it could reduce your wealth. It may also curtail your work opportunities and ability to plan for families etc., in the future. You really need to examine things and weigh things up, that's for sure.

Edited April 24, 2006 by boom_and_bust