Survey reveals young adults in Liverpool earn more than their UK peers
Revealed: Average twenty-something earns £22,622 a year with those in Liverpool paid the most and young people in London spending the largest amount on rent or mortgages
- Survey of 2,000 people under age of 30 reveals young adults’ average annual wage, spending habits, financial confidence and how much they have in savings
- The average young adult earns £22,600/year and has £300 left over each month
- Liverpudlians earn most (£27,716) while those in London fork out £732 in rent, they also have the highest average pot of savings across the country (£4,118)
- Pension contributions highest in Edinburgh (£184) and lowest in Plymouth (£95)
The average twenty-something earns more in Liverpool compared to their peers, while those in London pay the most on rent or mortgage payments, new research has revealed.
A survey of 2,000 people under the age of 30 revealed young adults earn an average of £22,622 a year and are left with over £300 in disposable income each month.
Of those polled, those in Liverpool earned the most on average at £27,716 and also had the most disposable income at £423 a month.
But those living in London were forking out an average of £732 per month in rent or mortgage payments.
The research also found an increase in money confidence among young people, with more than two thirds (68 per cent) feeling the pandemic has made them more responsible with their disposable income.
A breakdown of how much young earners are earning, saving and how they spend their disposable income by region in the UK
Chris Pitt, CEO of first direct which conducted the study, said: ‘Our research revealed the past 18 months have made a big impact on the way young people spend and save.
‘In terms of average salaries and the cost of living, there are some clear differences among young people in different parts of the UK, but overall we found some sense of money confidence among this age group with many choosing to act carefully with their money.
‘This is highlighted in particular by the suggestion that if given a pay rise, more would look to increase their savings or pay off existing debts before looking to spend their earnings on new clothes or gadgets.’
The high level of earnings in Liverpool could partly be attributed in part to the fact that the region had the fastest economic growth in England pre-Covid.
A survey of 2,000 people under the age of 30 revealed young adults fork out an average of £587 per month on rent or mortgage payments
People in London had the second-highest earnings (£25,524), followed by Edinburgh (£25,365) and Manchester (£23,402).
Those in Newcastle had the second highest disposable income at £403, followed by Edinburgh (£374), and Bristol (£340).
However, those living in Cambridge are least likely to splash the cash on unnecessary items, with residents spending just under £270 a year on things they don’t need, compared to a UK average of £520.
And when it came to paying for their rent or mortgage, respondents in London are typically paying the most at an average of £732 per month, while those in Glasgow were paying the least (£420).
As well as feeling more responsible with their disposable income because of the pandemic, the research also reveals if respondents had a pay rise, over half (52 per cent) would still live the same way and put the money into their savings, while one in five (20 per cent) would pay off debts, and 17 per cent would start treating themselves more.
It was found that under 30s living in Edinburgh and Plymouth (61 per cent) would be most likely to put their extra money into savings, while those in Bristol would most likely treat themselves (19 per cent).
Overall those polled had an average of £3,599 in cash savings, with Londoners having saved the most (£4,118) and those living in Manchester the least (£2,643).
Respondents in London said they currently have the most in average cash savings (£4,118) across the country
Young people are also looking into the distant future in terms of money, with the average under 30 paying £144.80 into their pension each month.
Those in Edinburgh are paying the most each month (£184), which is almost twice as much as those in Plymouth (£95).
It also emerged six in 10 respondents have taken out an investment, with almost a quarter (23 per cent) opting for stocks and shares.
Mr Pitt added: ‘Whether it’s growing their pension pot, adding to their savings or trying to increase their wealth through investments, the pandemic has seen young people across the UK focus on building themselves a more financially-robust future, which is really pleasing to see’
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