The survey found that:
- 93% are worried about their financial future, yet just 26% are working to identify their goals and formulating plans to achieve them.
- Less than half of survey respondents had drawn up any sort of financial plan;
- 28% had no budget, the most basic element of any financial plan;
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li>60% have clear financial priorities and goals but are yet to start planning for them;
- 36% have not yet sorted out any financial priorities and goals but say they intend to do so.
The trend is also reflected in respondents' savings habits:
- One third of those participating in the survey are saving £100 or less per month;
- 26% are not saving at all;
- 56% are struggling or falling behind with bills and other commitments;
- 15% routinely struggle to make their pay last until the next payday;
- Nearly two-thirds of those surveyed – that’s 19.1 million - say that their household financial circumstances have got worse in the last six months.
In all, the picture suggests that many are struggling to make ends meet and lack the impetus and information they need to successfully plan for their long-term financial future. Nick Cann, Chief Executive Officer at the IFP said, “Far too many people are living for today, failing to plan for tomorrow and this is likely to result in great hardship for many in the longer term." In part that reflects the complexity and lack of transparency around investment products in the UK. However, if the task seems too daunting, then financial planning week is an excellent way to start thinking more seriously about the issue. To help, we will be running a series of articles all week long that emphasise the basic concepts of financial planning, in plain, jargon-free English, and walk you through all of the major investment types.
To kick things off, we'll be focusing today on understanding your long-term financial needs and setting realistic goals to achieve them. We'll also run a short poll each day with an analysis of the results to follow the next day. The first one appears below:
Update: See the results of Monday's poll.
As part of Financial Planning Week, Morningstar is creating a special library of content that can be reprinted on your Web site at no charge. Contact us for more details and permission.
- 36% have not yet sorted out any financial priorities and goals but say they intend to do so.
