Britons Live In Sin Because It's Cheaper Than The Alternative!
Money (or the lack of it) is partly to blame for the number of cohabiting couples according to recent research from the Association of Investment Trust Companies ("AITC"). When questioned over half of young couples living together said it was the cost of getting married that deterred them from tying the knot.
Regionally, the research showed that money didn't get in the way of love for couples living in Yorkshire (17%) but sadly it did for Scottish people with over 53% admitting that lack of funds was the only barrier preventing them walking up the aisle.
The AITC research has also dispelled the myth that women are 'desperate' to get married and will stop at nothing to achieve their goal. The research shows that a lack of money was more likely to put women off getting married (39%) than men (32%). It appears that women have definite ideas about their wedding day and do not want to compromise their big day due to a lack of money.
Registry Office Vs Church Wedding
Traditional weddings are becoming less and less popular with couples opting for the more modern route of a registry office wedding. From the couples who married 20 years ago over two thirds (72%) opted for a traditional white wedding compared to only 27% who opted for a registry office wedding. However, from the couples who got married less than five years ago - less than half (43%) went ahead with a traditional church wedding.
Who Pays?
In the past, the bride's parents helped to cover the cost of the wedding, but the AITC research shows this tradition is slowly dying away. From the brides who got married 20 years ago, 44% of their parents paid for the wedding but only 31% of parents paid for the brides who married less than five years ago.
This change in tradition hasn't meant that the groom's parents are more likely to contribute - research shows that only 10% of the groom's parents contribute towards the big day. Therefore more couples are paying for their wedding themselves.
Money Vs Traditional Wedding Gifts
Recognising the financial pressures couples are under, family and friends are more likely to give money. Of couples who got married over 20 years ago, just 19% received money or investments compared to 74% who received wedding gifts.
Compare this to couples who got married less than five years ago and it is easy to see a different picture with money being the most popular gift - 52% said they received cash or investments and only 46% received gifts. However, of those who spent all or some of their wedding gift money 91% spent it on household goods or a holiday rather than invest it. This compares with 7% of couples who decided to invest any money.
Saving For The Future
Cost is obviously a big factor in the equation - the average cost of a traditional wedding is 16313,193 according to You and Your Wedding Magazine readership survey in 2000. The message is clear. Couples getting married these days are more likely to pay the bill themselves. In addition, couples may need to purchase a house, furniture and there's always the possibility of children in the future.
Investing a small amount each month is a manageable way to save for the future. Investing just 16350 per month over 5 years in the average AITC member investment trust would have grown to 1634,123 and if you invested 16350 for 10 years your investment would have grown to a considerable 16312,796 (Source: Hindsight*). In comparison, investing 16350 a month in the average UK savings account over 5 years would have produced only 1633,328 and over 10 years just 1637,496 (Source: Micropal*).
What Do The Newly Weds Do With Their Wedding Money?
Only 7% of couples decided to invest or save their money.
See the table below for a comparison of how an investment of 1631,000 invested in the average member investment trust, average unit trust or building society has performed over 5,10 and 15 years.
| 1631,000 Investment | 5 years | 10 years | 15 years |
| Investment Trust (Source: Fundamental Data*) | 1631,652 | 1633,273 | 1636,170 |
| Unit Trust (Source: Hindsight*) | 1631,458 | 1632,880 | 1634,499 |
| Average UK Savings Account (Source: Micropal*) | 1631,231 | 1631,609 | 1632,513 |
Annabel Brodie Smith, Communications Director at the AITC commented:
"The research has highlighted that lack of money does have a major impact on our decision to get married, if at all. Parents are less likely than ever to foot the crippling expense of a dream white wedding. For those dreaming of a white wedding or newly weds who need to save for their future it is a good time to find out about investment trusts."
"Investment trusts are owned by shareholders and governed by independent boards. They have low charges and are able to gear providing an excellent way of investing over the longer-term. They have low entry levels and you can invest in an investment trust from as little as 16325 per month or a lump sum of 163250."
The AITC has a free factsheet "its for Income for Capital Growth" available on 0800-085 85 20.
Technical details
- The research was completed by MORI Financial Services. The fieldwork was conducted among 962 adults between 31 May and 5 June 2001.
- * All figures quoted are to end of May 2001. Investment trusts figures are share price mid-market with 3.5% deduction for stamp duty, brokerage and market spread, net income re-invested. Unit trust figures offer to bid, net income reinvested.
- The Association of Investment Trust Companies (AITC) was founded in 1932 to represent the interests of the investment trust industry - the oldest form of collective investment. Today the AITC is the primary source for information and statistics on investment trusts. The AITC has 310 members and the industry has total assets of approximately 16376.9 billion.
