A new report has shed light on the state of British adults’ personal finances. For people retirement planning in Cheshire, Oswestry and beyond, it draws some sobering conclusions about savers’ ability and willingness to prepare for later life.
The study, conducted by Handelsbanken Wealth, found that around a fifth of UK adults currently have no ‘rainy day’ fund or financial safety net. Women, in particular, haven’t done enough to set money aside for potential shocks such as unemployment, with around a third of those surveyed admitting to not being able to meet the financial costs of a personal emergency. Many expressed concern over possible economic shocks, the cost of living posed by higher taxes or energy bills, or a possible recession.
Whilst there is some evidence of poor planning, the study noted an overall fall in the total value of cash savings, pensions and investments held by UK adults. These dropped by over £13,000 in the last 12 months, from £197,106 to £183,781, and people are increasingly drawing on their savings.
Financial experts, such as Kevin O’Donnell, the editor of Financial Planning Today, believe that more can be done by government, regulators and financial bodies. He proposes a nationwide campaign to educate people on budgeting and improving their basic financial management skills.
Experts have also stated that citizens need to be encouraged to set money aside whenever they can and tax incentivised to save in ISAs or pensions, something he argues that is not just in the individual but also the national interest.
