Younger generation are more proactive with finances than the over 40s

Today’s under 40’s in South Africa are more likely to be proactive with their personal finances than those between 41 and 60, a study has found. Two fifths of the under 30s, and 45 per cent of 31 to 40 year olds, are currently seeking professional fin

Craig Featherby, Head of the deVere Group, South Africa, which carried out the survey, says: “It is extremely encouraging that the under 40s are taking such a ‘hands on’ approach to their personal finances. The earlier you start, the easier it is to achieve - and exceed - your financial objectives.

“In addition, it appears that the message is getting through to the younger generation that personal finances are a personal responsibility – and increasingly so, as cash-strapped governments will no longer be able provide for people the way they have done in the past.

“It’s a very positive sign that in these volatile economic times, a high number of the under 40s are prepared to actively engage with their future financial freedom by seeking professional advice.

“What is very alarming, however, is that the vast majority of those nearing retirement are not following the stance of the younger generation.”

The study also highlighted that 41 per cent of the under 30s believe that they will be financially secure in retirement – a notion Mr Featherby cautiously supports.

He says: “All research shows that those who start financial planning early are significantly more likely to be able to enjoy a well-off retirement; so with 40 per cent of the under 30s surveyed already speaking to a financial advisor, there’s a statistically far higher probability that they will, indeed, be financially secure when they retire, compared to those over 40.”