The UK is a nation of savers, with 70 per cent preferring to save or pay off debt rather than spend a surprise £5,000 bonus, according to Aegon.
According to Aegon research, the desire to save far outweighs the desire to spend, with just 14 per cent choosing to treat themselves or loved ones.
It found that the top preference was to put the £5,000 windfall into a savings account, 27 per cent, a cash ISA, 16 per cent, or use it to pay off debt, 12 per cent. Just 9 per cent would make ISA or GIA stock and share investments, and 5 per cent would include it in their pension.
Meanwhile, only 5 per cent would spend it on themselves, and only 9 per cent would spend it on family. Additionally, there is a generational divide as 75 per cent of Baby Boomers prioritise debt repayment or saving, while 67 per cent of Gen Z prioritise these goals.
Aegon pensions director Steven Cameron says: “Our latest research paints a picture of a very financially responsible nation.
“You might have imagined that if presented with a surprise windfall of £5,000, many people would have been quick to ‘splash the cash’ on treating themselves or their families. Instead, we found a much greater likelihood that people would put this extra amount away in savings, or use it to pay off debt.
“It may be that recent economic challenges and the cost-of-living crisis have had a bearing. People may feel a greater need to have less debt or some ‘rainy day’ savings to tide them over should they need it.
“Our Financial Priorities research also told us that one of our greatest fears is facing an unexpected bill – and putting a windfall away offers protection from such issues and hopefully gives us peace of mind.
“It’s always good to have a financial ‘cushion’ to fall back on should you need one. This, plus having debts under control, can also pave the way to properly thinking about longer-term savings – for example, pensions.”
