“These figures should provide a timely wake-up call for those that are thinking of spring cleaning their personal finances at the end of the tax year. While some people may be pleased that household spending is buoyant, for families and individuals it is really important to prioritise financial security over short-term spending.
“A worrying number of households do not have any sort of cash savings or insurance to protect against financial difficulty if life throws unexpected challenges at them. Building up a cash buffer to cover at least three months of essential spending is a sensible first step. Once this buffer is in place, it is then possible to look further ahead and build a financial plan for the future with long-term investments.
“Research* we have conducted with YouGov shows that today’s working-age households are under-saving compared to older generations and are at risk of experiencing a less prosperous retirement as result. Almost two thirds of 30-45 year olds say they are worried they won’t be able to afford a decent retirement, with just under 80% saying it is because they can’t afford it. This feeling of unaffordability isn’t likely to disappear and if anything could get worse as today’s stats show incomes are going down and spending is going up.
“Planning can help people get to grips with their financial situation and prepare for their future. There is plenty of help available for people concerned about their savings, from government resources such as PensionWise or The Money Advice Service, to charities that specialise in helping people budget and manage debt, right through to professional financial adviser that can help build a personally tailored financial plan to give total peace of mind and security about your financial future.”
*A nationally representative YouGov survey of 3,000 UK individuals, 2016.