Happiness and well-being are goals we all strive for, and it seems that life is better once you’re over 55…
Recent research by Carnegie UK, involving a large-scale survey of almost 7,000 people, has revealed that people aged over 55 report a significantly higher quality of life compared to their younger counterparts.
For example, more people in this category said they could afford to pay for a week’s holiday, socialise with their friends and family outside the home, or pay for an unexpected expense. They also scored higher in other areas of wellbeing. For instance, the older age group tended to feel safer in their communities and were less likely to report poor mental health.
However, life isn’t quite as rosy for those in the younger age groups.
The wellbeing gap
Carnegie UK's Life in the UK survey assessed wellbeing by asking questions related to economic, social, environmental, and democratic aspects of life. The survey then calculated a ‘wellbeing score’ out of 100, with the national average landing at 62.
What makes this study intriguing is the noticeable difference in wellbeing between age groups: over-55s scored an impressive 65 on the wellbeing scale, in contrast, those aged 16 to 34 scored 59, and people aged 35 to 54 scored 60.
Why are older adults happier?
The research's findings may prompt us to question what factors contribute to the higher wellbeing of those over 55. Several factors could play a role in this phenomenon:
- Financial security: Many older adults have already established financial security through years of savings, investments, and wise financial planning. This stability can significantly impact overall happiness.
- Life experience: As people age, they accumulate life experiences that may provide a broader perspective, resilience, and a greater ability to navigate life's challenges.
- Reduced stress: Older people may have fewer financial burdens, such as mortgage payments, and are often past the stage of building a career. This reduced stress can contribute to a sense of wellbeing.
- Stronger social connections: Over the years, older adults tend to nurture and maintain strong social connections, fostering a sense of belonging and support that positively affects their wellbeing.
Financial support
With the challenges faced by younger people, especially those aged 16 to 34, in areas such as economic stability, environmental concerns, and political disillusionment, the need for support and guidance is more apparent than ever.
One arena where the older generation can make a significant impact is in sharing their financial wisdom to help the younger, unhappier demographic plan for a more secure future.
So how do you do this? The first step is acknowledging the unique financial challenges they face. Economic precarity, lack of job security, and rising living costs can be overwhelming for those just starting their careers. Older people can offer valuable insights into navigating these challenges, drawing on their own experiences of financial planning, saving, and investing.
Moreover, the older generation can offer guidance on long-term financial planning. Whether it's explaining the benefits of starting to save early or the importance of diversifying investments, these insights can empower the younger generation to make informed decisions about their financial future.
There are also so many dangers that younger people worried about their finances need to be aware of. The latest scams are sadly not a new phenomenon, but the dangers expand more widely than this towards seemingly tempting ‘get rich quick’ schemes and dubious tips on the latest hot fund from people who think they can side-step the long-term planning approach.
There are of course other ways to support the younger generation financially. Whether it's for educational pursuits, homeownership, or financial security, thoughtful gifting of money can create a lasting impact on the lives of younger family members, and work positively for you too.
For example, you can make gifts from your income - up to £3,000 per tax year. Alongside that, it’s possible to give smaller gifts of up to £250 to as many people as you like. A £3,000 gift could be the perfect way to send them off to university, or to help with a deposit for their first house.
You can also give a gift for a wedding or civil partnership, up to £5,000 for your child, £2,500 to your grandchild, or £1,000 to anyone else.
Gifting in this way can be good for your financial health because it takes money out of your estate, reducing any potential future liability for inheritance tax that may be calculated against it.
So whether guiding them on the benefits of early savings, the importance of diversifying investments, or navigating the dangers of scams and questionable financial advice, the older generation can empower their successors to make informed decisions for a more secure future. In addition to knowledge sharing, thoughtful financial gifting could serve as a meaningful gesture.
As we bridge the wellbeing gap across generations, the exchange of financial wisdom and support becomes a beacon of hope for a more fulfilled and secure future for all.
Please get in touch if you’d like to know more.
