Survey reveals young people's ambitious expectations

Research into what 21 to 35 year olds envisage for their future shows that a large number of them are naive when they say they will be able to afford many luxury items.

A survey of 860 workers by the ING bank found that over 20 per cent of them believed they could afford things such as luxury cars (24 per cent), plastic surgery (29 per cent) and holiday homes (20 per cent) when they reached their forties.

However the bank calculated an annual salary of £50,000 would be needed to fund this lifestyle and it said many of the 21 to 35 age group will not come close to it when they reach their forties.

Using earnings data from the Office for National Statistics (ONS) and estimations from the Centre for Future Studies, the bank believes the average annual wage will only rise slightly to £25,000, only half the required amount for the lifestyle some think they will have.

Lindsay Sinclair, chief executive of ING Direct bank, said: "Unfortunately, today's young adults are in for a rude awakening as there is a huge gap between their expectations and the salaries they will actually be earning.

The 2004 figures from the ONS have the average salary of a worker in the 21 to 35 age group at £20,099, so the rise to £25,000 is only a 26 per cent increase.

Mr Sinclair pointed out that many young people needed to look at savings accounts as a way of having spending money in the future.

He said: "Our report clearly highlights the need for the younger generation to get serious about saving if they want to achieve their dreams."