Nearly six in ten UK adults have no cash savings or savings of less than £5,000, according to the recent Financial Lives Survey from the Financial Conduct Authority (FCA).
An even greater proportion of UK adults have no investments at all, ranging from 65% in the South East and 78% in Northern Ireland. Furthermore, only 40% of UK adults are confident in the UK financial services industry, while just 31% feel that financial firms are honest and transparent.
The survey revealed that only 37% of adults are highly confident in managing their money, ranging from 26% in Northern Ireland to 43% in the West Midlands.
The state pension is the primary source of income for 44% of retirees in the UK, while this figure rises significantly when focussing on London to 53%, with core cities closely behind at 52% and 51% in the West Midlands.
Just under 30% of non-retirees aged 45 and over expect that their state pension will be their main source of income in retirement, while this figure increases to 35% in rural areas. However, 16% stated that they had not really thought about how they will manage financially when they retire, including 20% of non-retirees in the North East, Yorkshire and the Humber and core cities.
Brunsdon CEO and Financial Adviser Brian Morman said, “It is clear from this survey that too many people are still unsure of their financial futures. But the fact is that people do need guidance and help in planning their futures because that’s where they’ll spend the rest of their lives, after all. Many people do not take on board the fact that dropping to the level of just the state pension after a lifetime of earning will be a big lifestyle blow. And don’t forget - we’re tending to live longer. Therefore we are likely to need even more money, for longer, to maintain a comfortable lifestyle. Good financial advice is vital in my opinion.”
At Brunsdon we can help clients formulate a financial strategy. Please contact us or your usual Brunsdon Financial Adviser.