Menu
Save, make, understand money

News

The UK’s ‘high level of financial confidence may be misguided’

Written By:
Guest Author
Posted:
11/03/2016
Updated:
11/03/2016

Guest Author:
Paloma Kubiak

Adults in the UK have strong financial confidence and are good at avoiding debt, but half don’t have any savings a new index reveals.

While Brits exhibit strong levels of ‘financial wellness’, there are concerns the UK’s heading towards a “savings crisis” as they’re struggling to save or build up the necessary assets to secure a comfortable future.

The first-ever Financial Wellness Index which measures confidence, short-term and long-term planning and debt on a scale to 100, also reveals that 40% of 2,000 surveyed don’t have a pension or property to fall back on in emergencies.

Despite the brewing savings crisis, the UK scored well in areas relating to their management of day-to-day finances. Nearly 40% can now measure their exact spending within the nearest pound or two, compared with just 7% who don’t monitor spending at all.

UK adults score highest on the Index when it comes to steering clear of short-term financial difficulty and debt with 27% reporting they’ve no loans or credit commitments to worry about.

Of those who do have regular credit commitments, the vast majority – 75% – are always able to meet minimum repayments.

Sponsored

Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind

Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with

Sponsored by Post Office

Following the financial crisis, consumers are able to make sacrifices of ‘luxuries’ in order to maintain their financial wellness. Nearly 20% have axed their annual holiday while 16% have turned down the opportunity to socialise with family and friends.

As a result, almost two-thirds – 61% – think they would find it very or fairly easy to meet the cost of an unexpected major expense.

Ferdi Van Heerden, CEO of Momentum UK which commissioned the research, said: “Sadly, talking about financial matters is still considered ‘taboo’ in our society.

“Improving financial wellness is not a short-term process – it will take time and commitment from business, government and individuals alike. We hope that raising awareness of financial wellness will lead to meaningful change at both a national and individual level. We want to encourage people to think beyond ‘will I have enough today?’ and to look to the future, to safeguard their families and their aspirations now and in to retirement.”