BRITS could be killing off the five-year plan – as seven in 10 don’t have one in place, according to research.
A study of 4,000 adults found 25 per cent of these have ditched the traditional goal-setting method because they prefer to take things day-by-day rather than putting specific objectives in place.
While 22 per cent think that life – such as jobs and family – will just get in the way if they had one.
And 16 per cent think such plans are too rigid to try to follow these days, with 12 per cent admitting they struggle to stick to any sort of timeline.
That said, even though they don’t have a plan in place, half of these are still confident they will manage to reach all their financial goals.
Laura Turner, a money blogger behind @thriftylondoner, has teamed up with first direct, which commissioned the research.
She said: “Five-year plans can feel outdated in today’s fast-paced world, where so much can change in a short space of time – from career opportunities to family dynamics and even global events.
“Many people feel that flexibility is more important than sticking rigidly to a long-term plan.
“However, having some structure can help you stay focused and motivated, even if you adapt your goals along the way.
“It’s about finding what works for you and your circumstances.”
It also emerged that 38 per cent are confident in achieving their goals without a plan because of their motivation and determination to succeed.
And 37 per cent are optimistic because they are saving and investing regularly.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Switch bank accounts for free perks” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6351746915112″ video_ids=”” width=”640px”]Likewise, 27 per cent feel they can tick off their targets because they can easily adapt to changing circumstances.
Interestingly, the study, conducted via OnePoll, revealed it’s the older generations who are turning away from the traditional five-year plan.
Nearly six in 10 (59 per cent) Gen Zs are currently following one, as well as 41 per cent of Millennials.
But this compares to just 25 per cent of Gen X and 14 per cent of Boomers.
In terms of progress, Millennials (82 per cent) are the happiest with how they are working toward their half-decade ambitions.
Setting money aside for retirement (33 per cent) is the most common objective, while 29 per cent have travel ambitions locked into their aspirations.
One in four (27 per cent) have lofty ambitions to achieve financial independence in this period, and 21 per cent want to use this time to focus on getting on the property ladder.
Carl Watchorn, head of banking at first direct, added: “While traditional five-year plans may not suit everyone, it’s clear that many people still value setting goals – whether they’re financial, personal, or professional.
“When it comes to finances, we understand there is no ‘one size fits all’ approach to goal setting.
“We encourage our customers to think about what they want to achieve and set goals that reflect their unique priorities and circumstances.
“We’re here to support our customers make the most of their finances, providing a range of tools to help with this, including educational resources on our website, and free, personalised support from our team of Money Coaches.
“We recommend people speak to their bank if they need help with planning their finances for 2025.”
