Money and Mind Report
Money worries can have a huge impact on mental and physical wellbeing, and with financial conditions being tough for many right now, our report seeks to understand the financial wellbeing of the nation.
We want everyone to be aware of the importance of having a good financial plan in place, and to understand that being in control of your finances can reduce stress and improve financial wellbeing.
Chief Client Officer
"Financial wellbeing doesn’t necessarily equate to being extremely wealthy. We believe it comes from being in control of your finances - knowing how much you need to realise your financial goals, and being confident that you are on the right path to reach them.
A great way to take control is by putting in place a well-structured financial plan. Considering only 9% of adults surveyed currently have a financial plan in place, there is huge potential to help lessen the burden that financial uncertainty brings."
Here are some key findings from our research.
With the continuing cost of living crisis, it is the disheartening reality that one of the biggest stresses adults in the UK face is financial. The good news is that the majority of UK adults (89%) understand the importance of making their finances a priority. But why people choose to prioritise their finances varies hugely.
Our research found that a higher emphasis is placed on shorter term goals such as saving and paying off debt compared to longer term goals like investing, passing on wealth and making a will. Yet it is these longer term goals that could have the biggest impact on your financial wellbeing.
Despite nearly two-thirds of UK adults having money worries, less than half (46%) of these say that they would talk to their partner about their concerns.
In our fast-paced lives, we often overlook the importance of discussing money and financial matters with our family and loved ones.
These conversations can be challenging, but they are necessary for our financial wellbeing. By breaking the silence and having conversations about finances, we can build a stronger foundation for our financial future.
Of the 64% concerned about their finances, a staggering 25% were worried that they would not be able to afford household basics.
Even if you have your basics covered, the ‘high inflation, high interest’ rate environment, which has prevailed for most of 2023 and is likely to be with us for some time yet, is squeezing household incomes.
This squeeze lessens the ability to save each month, which means that people may not be able to afford the financial futures they had previously hoped for.
As a result of the current cost of living crisis, 23% of those worried are keeping more money as cash savings right now.
Unfortunately, the interest rate on cash accounts is often less than the inflation rate meaning that cash holdings would buy fewer goods and services over time, leaving cash holders worse off.
Investing in the markets can be daunting for many of us. But a good financial adviser can guide you on your investment journey and provide support and reassurance where needed including explaining that the value of your investments and the income from them can fall as well as rise and is not guaranteed and you may get back less than you invest. They will also explain that there is no guarantee by investing money it will keep level or beat inflation, particularly when inflation is high.
View our previous Money and Mind Reports
Our inaugural report was published in response to raising awareness of mental health and general wellbeing in recent years. Like us, many businesses are placing mental health at the top of their wellbeing agendas.
The findings of our report highlighted the financial issues that keep people awake at night demonstrating that more needs to be done to encourage stronger engagement with long-term financial planning. We firmly believe this will improve the financial wellbeing of the nation.
Our 2022 report was published as the UK was emerging from the Covid-19 pandemic to 30-year high inflation rates and increasing interest rates.
Despite uncertainties that existed around the world, our findings revealed that a quarter of the UK population were able to save more as a result of the pandemic and lockdown restrictions. Additionally, 24% said that due to the uncertainty they would be more likely to create a financial plan, and 15% were more focused on improving their financial security.
Our latest report looks at how financial wellbeing has changed since our initial report in 2020. Perhaps unsurprisingly the number of people with money worries is still high.
A personalised financial plan could help alleviate these concerns , yet our research highlights that of those surveyed who are unsure about making a financial plan, 83% don’t see the value of getting professional advice to help them. It's our mission to change that with simple, accessible and affordable advice.