YOUNG ON THE ROAD TO A POOR RETIREMENT
Equifax Reveals That 33% Of 18 To 25 Year Olds Have A Mortgage Five Times Their Salary
London 17th April 2007 – The latest survey from Equifax, the instant online credit information provider, reveals more about the savings and debts of UK consumers. With consumer debt at a record £1.3 trillion in 2007 and interest rises on the horizon, Equifax is warning people to think before taking on more debt and to plan for their financial future. In particular, the survey shows that young people are setting themselves up for a poor retirement – with women potentially most at risk.
Worryingly, 50% of 18-25 year olds already have over £5,000 of short term debt. And 33% of this age group that have a mortgage, have borrowed more than five times their salary. With this group of consumers being the most vulnerable to job change, combined with the high risk of further interest rates rises, Equifax is warning that they could find themselves in serious financial difficulties. Perhaps not surprisingly, 75% of 18-25 year olds don’t have any form of pension. Yet with the debts already adding up, the survey suggests that borrowing is starting earlier than ever amongst UK consumers.
“It looks like young people simply aren’t thinking about their financial future – even 10 or 15 years hence, let alone their retirement”, confirmed Neil Munroe, External Affairs Director, Equifax. “The level of debt they have starts to mount up pretty early. And when looking at the 41 to 50 year olds we can see the impact not planning for retirement can have with 32% saying they don’t know if they will have enough saved for a comfortable retirement. Even more worrying is the 25% of 51 to 60 year olds with a pension who say they won’t have enough for a comfortable retirement.”
The survey also reveals a gender gap, with men (43%) a third more likely than women (28%) to have a monthly disposable income of over £400. Women also appear less likely to save, with just 66% saving, compared to 70% of men. However, when it comes to debts, men and women are about equal with 36% and 35% respectively admitting to over £5,000 of short term debts. The wage gap is obviously taking its toll on the pension issue with only 63% of women putting away for retirement compared to 70% of men.
“Borrowing seems to start at a very early age, but people need to start saving early too, in order to give themselves a safety net for the future. Many people in their later years are looking at a bleak retirement and this should serve as a cautionary tale for young people who continue to build up debts without putting anything aside.”
To get a clear picture of all their financial commitments, Equifax recommends that consumers get a copy of their Equifax Credit Rating™. This can be done instantly online at www.equifax.co.uk.
Equifax Savings and Debt Key Survey Findings
How much short-term debt do you think you have (i.e. credit cards, store cards)? |
||||||||||
Male |
Female |
18-21 |
22-25 |
26-30 |
31-35 |
36-40 |
41-50 |
51-60 |
60 plus |
|
None |
22% |
10% |
0% |
15% |
16% |
15% |
11% |
13% |
29% |
32% |
£500-£1,000 |
18% |
17% |
13% |
14% |
21% |
17% |
18% |
18% |
14% |
24% |
£1,001 - £1,500 |
6% |
7% |
0% |
9% |
6% |
1% |
7% |
8% |
8% |
8% |
£1,501 - £2,000 |
3% |
5% |
13% |
12% |
5% |
0% |
2% |
3% |
4% |
12% |
£2,001 - £2,500 |
4% |
6% |
12% |
0% |
2% |
6% |
4% |
9% |
4% |
0% |
£2,501 - £3,000 |
2% |
6% |
12% |
3% |
6% |
3% |
7% |
3% |
3% |
0% |
£3,001 - £3,500 |
2% |
2% |
0% |
0% |
2% |
1% |
2% |
3% |
3% |
0% |
£3,501 - £4,000 |
2% |
3% |
0% |
6% |
2% |
0% |
4% |
2% |
4% |
0% |
£4,001 - £5,000 |
5% |
9% |
0% |
3% |
9% |
12% |
3% |
5% |
5% |
0% |
Over £5,000 |
36% |
35% |
50% |
38% |
31% |
45% |
42% |
36% |
26% |
24% |
Roughly what proportion of your monthly income do you save? |
||||||||||
Male |
Female |
18-21 |
22-25 |
26-30 |
31-35 |
36-40 |
41-50 |
51-60 |
60 plus |
|
I do not save anything |
30% |
34% |
50% |
34% |
39% |
45% |
29% |
26% |
20% |
22% |
5% |
23% |
35% |
25% |
34% |
18% |
24% |
33% |
38% |
28% |
11% |
10% |
16% |
12% |
13% |
9% |
17% |
14% |
12% |
11% |
20% |
30% |
15% |
12% |
5% |
0% |
11% |
7% |
1% |
10% |
12% |
10% |
18% |
20% |
7% |
7% |
0% |
3% |
7% |
3% |
10% |
8% |
10% |
4% |
25% |
4% |
3% |
0% |
3% |
5% |
4% |
2% |
2% |
4% |
4% |
30% |
4% |
3% |
0% |
3% |
4% |
7% |
2% |
2% |
4% |
7% |
40% |
1% |
0% |
0% |
0% |
0% |
1% |
0% |
0% |
2% |
0% |
50% |
1% |
1% |
12% |
3% |
1% |
1% |
0% |
0% |
1% |
4% |
Over 50% |
2% |
0% |
1% |
0% |
2% |
0% |
2% |
1% |
1% |
0% |
How many times your salary is your mortgage? |
||||||||||
Male |
Female |
18-21 |
22-25 |
26-30 |
31-35 |
36-40 |
41-50 |
51-60 |
60 plus |
|
X 1 |
14% |
6% |
0% |
0% |
5% |
7% |
3% |
13% |
20% |
29% |
X 2 |
25% |
21% |
0% |
0% |
17% |
18% |
19% |
31% |
33% |
29% |
X 3 |
30% |
38% |
0% |
30% |
32% |
44% |
50% |
27% |
20% |
28% |
X 4 |
16% |
18% |
39% |
30% |
17% |
19% |
19% |
17% |
15% |
0% |
X 5 |
7% |
8% |
28% |
20% |
17% |
7% |
7% |
6% |
0% |
0% |
More than X 5 |
8% |
9% |
33% |
20% |
12% |
5% |
2% |
6% |
12% |
14% |
Do you have a pension? |
||||||||||
Male |
Female |
18-21 |
22-25 |
26-30 |
31-35 |
36-40 |
41-50 |
51-60 |
60 plus |
|
Yes |
70% |
63% |
25% |
38% |
53% |
59% |
80% |
75% |
79% |
96% |
No |
30% |
37% |
75% |
62% |
47% |
41% |
20% |
25% |
21% |
4% |
Do you think you will have enough money saved to have a comfortable retirement when the time comes? |
||||||||||
Male |
Female |
18-21 |
22-25 |
26-30 |
31-35 |
36-40 |
41-50 |
51-60 |
60 plus |
|
Yes |
46% |
41% |
13% |
32% |
32% |
40% |
36% |
40% |
54% |
62% |
No |
28% |
30% |
50% |
32% |
25% |
33% |
25% |
32% |
25% |
29% |
Don’t Know |
26% |
29% |
37% |
35% |
43% |
27% |
39% |
28% |
21% |
9% |
* Savings and Debt Survey conducted with over 500 Equifax customers in March 2007
END
Notes to Editors
If you would like more information or would like to arrange an interview with Neil Munroe please contact Cecile Stearn, Claire Foster, Kate Clements or Elinor Puzey at HSL on 020 8977 9132 or email claire@harrisonsadler.com
About Equifax
Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. .
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