A recent study conducted by a UK fintech has uncovered that many consumers in the United Kingdom are confused regarding how to handle their funds.
The financial literacy test posed 18 specific questions focusing on key areas individuals were likely to encounter within their lifetime, such as ISAs, investments, savings and retirement.
The study surveyed around 2,000 residents here in the UK but found that approximately 40% of respondents could not answer basic questions to do with personal finance. For example, defining what the acronym ISA stands for, what exactly annuity providers do when a person nears retirement, and the fundamental difference between variable and fixed rates.
Questions regarding making investments had the second lowest pass rate average of 44%, followed by questions relates to savings (34%) and ISAs (32%). Overall, the survey also revealed that 88% of UK consumers claimed they lacked personal confidence regarding their finances and 32% stating this had a harmful effect on their mental wellbeing.
About 90% of the respondents admitted they possessed no confidence in making investments and around 88% surveyed commented they were unsure about ISAs. Finally, approximately 90% of UK citizens taking part in the test confirmed they felt unable to efficiently manage funds for their retirement.
Though the public may be unsure, the good news is that UK residents can rely on wealth management companies for expert financial advice in Chester, Birmingham, London, and other cities across the country for guidance on any areas of their personal finances they find complex.
