Have you started your nest egg yet?

According to a new survey, four out of five middle income families are unable to save for their children's future.

 

Many are hoping for “something to turn up” as 78% cannot or will  not start a nest egg.

 

According to Demos, parents are underestimating the costs that their kids will face in the future, such as high property prices and university fees.

 

The study polled 2,000 people and found that 37% thought the most significant future costs was their little one's education while 31% felt it would be helping their offspring get on the property ladder. Even though an adult’s nursing care can absorb a huge portion of savings, only 19% considered this a priority.

 

Major political parties suggest that there will be further cuts to spending, however, only 28% of those polled anticipate it happening and 60% believe the economy would continue to improve or remain static.

 

Claudia Wood, author of the report, says: “Britain’s middle-earners might think they’re getting by, but many aren’t saving enough or putting enough into their pension, instead crossing their fingers and hoping something will turn up.”

 

Wood says that while middle earners value of hard work should be applauded – only a quarter calls for more state services – they “must be given the right information about what failing to save will mean for them in later life.”