- New research from Aegon shows that, in the event of a surprise £5,000 bonus, 70% of people would prefer to save for the future or pay off debt than spend the money on themselves or loved ones (14%).
- Top preference for the bonus was putting it into a bank savings account (27%), with cash ISAs the second-most popular option (16%).
- Only 9% of people would choose to spend the money on their family, and an even smaller group would treat themselves (5%).
- Baby Boomers (75%) are marginally more inclined to save or repay debt than those in Generation Z (67%).
The latest research from Aegon’s Financial Priorities study reveals that in the event of a substantial surprise bonus, the UK is a nation of savers rather than spenders.
70% of UK adults would prefer to save for the future or pay off existing debt, should they receive a surprise £5,000. This considerably outweighs the 14% of people who would prefer to spend it on themselves or their loved ones.
More specifically, the number one preference for the £5,000 windfall would be to deposit it into a bank savings account (27%). Putting it into a cash ISA is the second-most popular plan for the money (16%), while paying off any existing debt occupied the third spot (12%). 9% of people would invest the money in a stocks and shares ISA or GIA, and 5% would choose to invest the money into their pension.
Surprisingly, only 9% of people would choose to treat their family, and an even smaller 5% would treat themselves.
A slight generational gap can be seen between the intentions of those in Generation Z (aged 18-27) and the Baby Boomers (aged 60-78). The research shows that 67% of Gen. Z would choose to save or repay debt, compared to 75% of Baby Boomers.
Steven Cameron, Pensions Director at Aegon, says the findings give insights into how recent economic challenges have impacted the UK public’s money mindset. He comments:
“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.”
Methodology
The Financial Priorities survey of 2,000 UK adults was conducted by Opinium on behalf of Aegon UK between 13 and 17 December 2024, in a study that was nationally representative of age, gender and geographic criteria.
About Aegon
In the UK, Aegon offers pension and investment solutions to over 4 million customers. Aegon employs over 2,000 people in the UK and together with around 500 people employed by Atos, we serve the needs of our customers. Figures correct as at 31/12/2023. More information on aegon.co.uk/about-us
Aegon UK is part of the wider Aegon Group, an international financial services holding company. Aegon’s ambition is to build leading businesses that offer their customers investment, protection, and retirement solutions. Aegon’s portfolio of businesses includes fully owned businesses in the United States and United Kingdom, and a global asset manager. Aegon also creates value by combining its international expertise with strong local partners via insurance joint-ventures in Spain & Portugal, China, and Brazil, and via asset management partnerships in France and China. In addition, Aegon owns a Bermuda-based life insurer and generates value via a strategic shareholding in a market leading Dutch insurance and pensions company.
Aegon's purpose of helping people live their best lives runs through all its activities. As a leading global investor and employer, Aegon seeks to have a positive impact by addressing critical environmental and societal issues, with a focus on climate change and inclusion and diversity. Aegon is headquartered in The Hague, the Netherlands, and listed on Euronext Amsterdam and the New York Stock Exchange. More information can be found at aegon.com/about
The Information In this press release is intended solely for journalists and shouldn’t be relied upon by any other persons to make financial decisions.