A quarter of UK adults aged over 25 are not confident about their financial situation following the strains of the COVID-19 pandemic, according to the Chartered Institute for Securities & Investment (CISI).
After surveying 1,965 adults for the CISI, YouGov also found that 33% of 35-54-year-olds, and 27% of women, are no longer confident about their finances.
The picture across UK regions reflected a similar trend, with respondents in Northern Ireland least confident about their finances on 36%, while those in the North West, Scotland, and West Midlands were most confident, where 23% said otherwise.
“It’s clear that many families across the nation will have had their lives turned upside down by the impact of this pandemic, perhaps through ill health, bereavement, furlough or business losses,” said Jacqueline Lockie, the CISI's head of financial planning.
“The findings of this survey show the real impact on people’s confidence in managing their future finances. Financial planners, this year more than any other, can offer a steadying hand to anyone worried about money.”
Meanwhile, separate research from Aegon has found that 33% of UK employees who have had financial advice are more likely to be able to financially handle a major unexpected expense, compared with 23% of those who haven’t.
After surveying 2,000 workers, the life insurance company also found that 49% who haven’t taken financial advice are concerned that the money they have now or will save won’t last, while 37% who have taken advice feel the same way.
In addition, those who haven’t taken financial advice were more distracted at work and less likely to enjoy life because of the way they manage their money.
“Our report shows a positive relationship between financial advice and financial well-being, recognising that advisers play a key role in supporting the financial well-being of their clients," said Ronnie Taylor, chief distribution officer at Aegon.
“It suggests that those who have engaged with a financial adviser about pensions, investments or protection are more likely to enjoy life because of the way they are managing their money, have money left over at the end of the month and are able to handle an unexpected expense.”
Image credit: iStock
Author: Chris Seekings