FINANCIAL WELLBEING

Talk Money week: 20% of UK consumers say they would keep financial concerns to themselves says research from Schroders Personal Wealth

  • 13 November 2020
  • 10 mins reading time

Talking about your finances is key to ensure you make the most of your hard-earned money – and to tackle any problems.

The importance of being open about money matters is highlighted by the campaign – Talk Money Week (9-13 November) – which is designed to improve financial wellbeing by encouraging people to open up about their finances.

When it comes to discussing financial concerns, research from the Schroders Personal Wealth Money and Mind report revealed that the majority of UK consumers would seek counsel from their partner (55%), while 20% said they would talk to parents and 16% said they would choose a friend.

Just 15% said they would seek help from a financial adviser. Worryingly, some 20% of consumers said they would keep financial concerns to themselves and not tell anyone at all.

David Thomas, Head of Business Development, at Schroders Personal Wealth said:

“Opening up about our finances can benefit our wealth and overall wellbeing.

The Talk Money campaign, run by the government’s Money and Pensions Service, is one of many important ways in which financial wellness is being championed.

The SPW Money and Mind Report reveals that talking to a partner is the main port of call. It’s a good start, but what could boost your financial security is creating and reviewing a financial plan. For more complex cases, talking to a qualified adviser can help give you a big-picture view of your finances and this should improve confidence, put you in a better financial position and should provide you with greater peace of mind that your money is working hard to achieve your goals for the future.”

Stress and money

One clear theme from the Money and Mind study was the worry felt by individuals about their finances.

Stress levels about money matters are the highest in the youngest generations. Overall, 48% confessed they regularly or occasionally experience stress over their financial situation. This rose to 59% for 35-54-year-olds and 61% for the group aged 18-34.

All age groups also admitted their worries extended to problems at work. Around a quarter (27%) of UK consumers say that financial worries affect their performance in their job, with this rising to over a third (36%) among Generation Z and Millennials (18-34 year-olds).

While nearly half (46%) of those under 35 who have felt financial stress say that having a financial plan would improve their financial wellbeing, only 13% said they would speak to a financial adviser.

Mind the advice gap

Knowing you are on track for a secure future can help to improve financial wellbeing. A financial adviser can help identify areas where you might be able to improve your finances and help create a plan to get you back on track. Not only can you get peace of mind, it’s likely to result in you feeling less stressed or anxious and more in control.

The report found that confidence in being on track to have enough money for the future is low among all age groups, who each have different pressures.

Overall, just 47% of people said they were on course – falling to 44% for Generation Z and Millennials.

Mid-lifers have the most pressure on finances, perhaps with a number of dependants to pay for. They had least confidence in being able to say that the way they are managing their money means they can enjoy life, at 51% compared to 54% of 18-34s and 67% of over 55s. For the over 55s, the focus of financial planning is typically retirement. Yet our findings unveiled a large gap in the knowledge of savers who don’t know how much they will need in retirement.

Some 43% of over 55s admitted they don’t know how much money they will need to live comfortably when they quit work.

This dropped dramatically to 24% among those who have a financial adviser, indicating that increased financial support can provide better guidance to those who are uncertain about retirement planning.

By not engaging with financial advice UK adults could miss out on the crucial opportunity to maximise their savings for both short and long-term goals.

Improving financial wellbeing

Feeling in control of a situation can bring peace of mind. Yet the 18-34-year-olds surveyed say they are the least on top of their finances at 55% compared to 58% for 35-54-year-olds and 76% of the over 55s.

The Money and Mind report highlights that financial wellbeing is ultimately achieved when you feel confident and have a clear understanding of what your financial priorities are. Getting a clear picture of your financial position will enable you to identify any areas where you feel like change is needed and who you may need to seek support and guidance from.

David Thomas added: “There is a clear need for people to seek financial guidance in all age groups. Whether this is through the excellent support offered by organisations like the Money Advice & Pension Service (MaPs) or having a qualified financial adviser on board, engaging with your finances and making and reviewing a financial plan is the foundation to improving both financial and general wellbeing and improving your financial future.”

About the survey

This data set contains responses from 2,000 UK Adults (18+) .The data has been weighted to be nationally representative of the UK population. Data collection was conducted between 24th July - 30th July 2020.

For more information read the full Money and Mind report

Important information

Any views expressed are our in-house views as at the time of publishing.

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In preparing this article we may have used third party sources which we believe to be true and accurate as at the date of writing. However, we can give no assurances or warranty regarding the accuracy, currency or applicability of any of the content in relation to specific situations and particular circumstances.

Forecasts of future performance are not a reliable guide to actual results in the future; neither is past performance a reliable indicator of future results. The value of investments, and the income from them, may fall as well as rise and cannot be guaranteed and the investor might not get back their initial investment.

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