18 to 35 year olds under
THE Pensions and Lifetime Savings
Association (PLSA) released research showing 18 to 35 year olds' plans to save
for the long term are curbed by short term necessity.
This group is often described as the YOLO (you only live once) generation but
our research reveals quite a different profile. Instead of adopting spendthrift
attitudes 18 to 35 year olds want to save, feel they ought to save, but simply
51% of respondents tell us they get more satisfaction from saving money than
spending it and 53% disagree with the idea that they tend to live for today and
let tomorrow look after itself. When it comes to debt, the majority (57%) say
they do not have any (excluding student loans) and 65% of 18 to 35 year olds do not
acquire any debt on a monthly basis.
Joanne Segars, Chief Executive, Pensions and Lifetime Savings Association,
commented:- "18 to 35 year olds are no different to many people; they want
to save for a secure future, but short term financial pressures get in the way.
And it's not surprising that without help this group prioritises short term over
long term saving given the current rock bottom interest rates and low wage
Our research suggests many 18 to 35 year olds shy away from the sort of investments
that give better returns over the long term, but it also suggests that where a
financial decision or situation becomes a fact of life, for example student
loans, this group quickly accepts it and adapts. We've seen this behaviour in
workplace pensions with a very low opt out rate from automatic enrolment of just
7% by those aged under 35.
Those younger savers staying in their workplace pensions are smart. Automatic
enrolment provides them with a hassle free way to save for the long term; they
don't have to think about the investment strategy, or choosing the product, or
moving their money, they just have to keep saving. Their own contributions are
doubled by contributions from their employer and Tax Relief from the government;
and they have time on their side; early savings benefit from compound interest,
investment growth and time to recoup any losses. The good news is a workplace
pension is coming to every work place by 2018."
► Money in, money out...
Asked what prevents them from saving, 48% say the cost of living is too high and
43% say their salary is too low. One in five tell us they feel their lifestyle
stops them saving, but this is topped by 30% who say the cost of their rent or
mortgage stops them saving.
► Good intentions...
77% tell us that over the last 6 months they felt the same or increased pressure
to save for the future; only 6% tell us they felt the pressure had decreased.
Some 18 to 35 year olds are managing to save but typically for the short term: 34%
are saving for a rainy day and 32% say they are saving for a 1 off purchase
such as a holiday, car or TV.
► Property preferred...
Given an unlimited sum of money 42% tell us they would prefer to invest in
property to get the best return; either buying their own home or investing in
additional property. There is comparably little interest in ISAs, or investing
directly in the stock market. However, faced with the reality of what they
actually have available to save 18 to 35 year olds give quite different answers
with 41% opting for a savings account and 26% choosing a cash ISA.
► They're student loans not debts... 54% of those who have an outstanding student loan tell us they don't consider it
as a debt and 26% say student loan repayments prevent them from saving each
month; suggesting student loans have simply become a fact of life for this
► Cautious savers... 47% tell us that the interest rate offered is an important factor when choosing
between saving products and 30% want to be able to access their money at any
time with no fees. 24% say that the financial risk associated with the product
is important when choosing between financial products.
► Locked out of the long term... 58% of 18
to 35 year olds agree with the statement that saving products are
designed for people who already have money. The survey paints a picture of a
cohort of savers who want to save for the long-term, but the reality of the cost
of living, low salary levels and housing costs mean it is difficult for them to
When they do save it seems they feel they cannot afford to take risks with their
savings and opt for the less risky, low interest options; despite appearing to
have an appetite for better returns, telling us they value a good interest rate
when choosing a saving product.
New forum on homelessness to
A new forum to help Liverpool City
Council's drive to prevent homelessness and reduce rough sleeping is being
launched. It is open to anybody; whether they provide a service to homeless
people, are homeless themselves or have been in the past, or simply have an
interest in the subject.
The new forum, which will meet twice a year, is part of the council's strategy
on tackling homelessness in the City. "There is, quite rightly, a lot of interest in homelessness,
but perhaps some
people, do not fully appreciate some of the issues involved and the work which
goes on to resolve them.
This new body will give us a chance to explain what we and our partners are
doing and aiming to achieve.
But, we know we don't have a monopoly of wisdom in this area and we are keen to
hear other views and ideas. It will also be an opportunity for people to ask
questions about this subject. How we deal with homelessness is a very
important issue so I am hoping that we get a good attendance at the forum." said
Councillor Frank Hont, cabinet member for housing.
The 1st meeting of the forum will take place at Liverpool Town Hall, on 7
September 2016, from 10am to 12 noon, when the Council's new Homeless Strategy, for 2016 to
2020 will be launched. To book a place at this free event please
email them, stating if you have any access requirements.
If you see a rough sleeper you can help by calling the helpline on:- 0300 123 2041
and support will be offered to them.
Construction skills shortage
at breaking point in Liverpool and North West
THE skills shortage in the construction
industry is at:- "breaking point", according to a survey commissioned by a
public sector owned built environment specialist operating across Liverpool and
the North West.
The report comes on the back of ONS data released in August which shows
construction output has decreased by 9% quarterly and 0.2% annually in the North
Scape Group carried out the most comprehensive survey of the UK's construction
supply chain, revealing the true extent of the skills crisis. Scape operates
throughout the North West, completing projects such as Notre Dame Catholic
College and Archbishop Blanch Secondary School in Liverpool, as well as working
across the UK.
Its latest analytical report Sustainability in the Supply Chain, published this
week, surveyed more than 150 contractors, subcontractors and senior managers at
public sector organisations in the North West and across the UK. According to
85% of public sector respondents, the skills shortage is negatively affecting
the quality of projects, particularly at regional level.
Scape Group chief executive Mark Robinson said the survey's finding that 1 in
10 contractors and suppliers think the skills shortage is critically impacting
budgets was a stark reminder that the problem needed to be tackled head on
through collaborative working and training. "Our research has shown that
the skills shortage is at breaking point, not only severely impacting the
quality of what we are building but also our ability to build it on budget.
While there is a mountain to climb to overcome this challenge, basic
recommendations can be put in place to ease the burden; for example, 19% of
contractors and subcontractors still do not have an apprenticeship scheme."
said Mr Robinson.
The report also shows the vast division between the public and private sector
when it comes to how they define a healthy supply chain and what their primary
aims are. Within the private sector, long term operational stability was the
core aim (72%), however within the public sector, 70% of those surveyed felt
that providing long term benefits for the local economy should be one of the
Mr Robinson emphasised that this juxtaposition between the 2 sectors needed to
be addressed immediately if the skills shortage is to be stopped. "Now
more than ever we need to work more closely together in order to deliver for
both the public sector and SMEs. We can only achieve sustainable levels of
efficiency through a perpetual focus upon true collaboration, partnership and
greater engagement with all stakeholders."
The report also shone a light on the communication challenges between the public
and private sectors, with 75% of suppliers believing the public sector needs to
do more to engage with its supply chain, and 80% of public sector managers
Forward visibility of upcoming projects represents a continuing challenge, with
68% of the contractors and suppliers surveyed typically bidding for work 6 to 12
months before a project or contract starts, but 33% believing they should be
able to bid for opportunities up to 18 months before the contract starts.
The private sector's reliance on the public sector was another key theme of the
survey, with the public sector funding more than a quarter of the business for
64% of contractors and suppliers interviewed. When broken down further, it is
clear that SMEs rely more heavily on the public sector, with 26% of companies
stating it funded more than 50% of their work.
"Given the current economic uncertainty after Brexit, the £30billion of
public sector construction activity is a vital stream of revenue for the sector
and early signals from the new government that austerity measures might be eased
would be welcomed across the board." Mr Robinson added.
Once the results of the survey were collated, Scape put together a list of
recommendations based on the results it had gleaned from the marketplace.
Top of the list is addressing the skills shortage, which Scape recommends should
be tackled head on by a greater focus on apprenticeships, and addressing the
ever present gender gap in the industry by offering more attractive
opportunities to young women.
Next, greater forward visibility of project pipelines to support SMEs is vital,
according to Scape, in generating long term financial security in the UK.
Mr Robinson said:- "If tenders were made public more than 18 months in
advance it would allow SMEs the time to plan ahead, form partnerships and
increase the likelihood of a successful bid. It would also allow for more stable
employment patterns, resulting in increased stability in the pricing of
contracts across the whole construction industry."
Scape emphasised that a greater collaboration between the public sector and the
supply chain is also needed to support efficient delivery, for example through
consistent and forward looking digital communications driven by government, and
the importance of local spend and social value must be communicated.
"The public sector, by its very nature, must deliver greater social value
through its supply chain and this is balanced alongside the increasing pressure
to deliver savings and achieve more with less.
The supply chain is the vehicle through which the public sector can deliver this
extra value and there are greater opportunities for those who understand this
key aspiration. However, our survey has shown the public sector needs to clearly
communicate the value of local spend and present tangible results which
suppliers can relate to." said Mr Robinson.