Confidence in financial future dips for ‘squeezed middle’ aged 45 to 54 – survey

People aged 45 to 54 years old are the only age group to feel more downbeat than optimistic overall about their financial future, a survey indicates.

People in this age group are often described as the “squeezed middle” as many are juggling children who are yet to fly the nest as well as helping to care for older parents.

Concerns such as clearing mortgage debts and having enough money to be able to retire may also be weighing on the minds of those in mid-life.

The research, carried out for Newcastle Building Society, found that 37.86% people aged 45 to 54 are feeling pessimistic about their future finances, while 36.66% are optimistic.

The age group was also the only one to reveal: “I can’t afford to save right now” among their top five responses when asked what they were currently saving for, with 16.04% saying they are unable to put money away.

Nearly a fifth (19.82%) of mid-lifers said they do not feel comfortable talking to anyone about money, according to the survey of more than 2,700 people across the UK in June.

More than half (55.87%) of this age group said they trust their local bank or building society branch as a place to have an open conversation about their finances.

The society said it has continued to invest in its branch network and open in new locations.

Younger adults aged 25 to 34 were found to be the most upbeat about their future finances, with around seven in 10 (71.52%) in this age group feeling positive.

Ben Smith, head of product development at Newcastle Building Society, said: “Our research shows a worrying dip in financial confidence among people in mid-life – a time when many are juggling big financial responsibilities like mortgages, caring for family and planning for retirement.

“Our research clearly shows that trust in local branches remains strong, but we know that access to them is deteriorating fast due to widespread closures.”

Here are the percentages of people across age groups who felt optimistic about their financial futures, followed by those who felt neutral and those who were pessimistic (figures were rounded and so may not add up exactly to 100.00%):

18 to 24, 50.60%, 26.35%, 23.05%

25 to 34, 71.52%, 15.91%, 12.58%

35 to 44, 59.29%, 20.61%, 20.10%

45 to 54, 36.66%, 25.48%, 37.86%

55-plus, 36.22%, 29.58%, 34.19%