Over 40 per cent of people don’t think they are saving enough to be financially secure
Research conducted by workplace savings provider Cushon has found that 42 per cent of people say they are not saving enough to consider themselves financially secure.
The research looked at views on financial security and what it means for different people. Of those who are not sure they would consider themselves to be financially secure, 31.11 per cent said they do not have enough disposable income to feel financially secure, or are not in a position to build a level of financial resilience. This was particularly the case amongst those aged between 16-34.
Of those surveyed, 17.78 per cent said they didn’t know how to become financially secure. This was found to be much higher amongst women with 23.97 per cent stating this as an issue in comparison to 10.58 per cent of men. Eight per cent of respondents had too many other debts to worry about first.
Previous research carried out by Cushon during the first lockdown found that 78 per cent of UK adults across all age groups agree that the Covid-19 pandemic has made them realise that having accessible savings is very important. The latest research found that 40 per cent of those saving money right now are putting cash aside so they have something to fall back on should the worst happen. 16 per cent of people worry about how to manage credit and debit card debt and 16 per cent are concerned about how to save consistently. What people worry about is age related with 22.5 per cent of under 35-year olds wondering how they will afford to buy a new home. Just 7 per cent had no financial concerns at all.
Steve Watson, Head of Proposition, Cushon, says: “70 per cent of individuals say their mental health is affected by financial worries. This could become a huge issue for the UK if not managed properly. Being financially comfortable means very different things to different people. Having a financial buffer in place means that if the worst should happen, individuals feel better prepared to deal with the situation.
“But it’s concerning that 42 per cent of people recognise that they are not saving enough to be financially secure. But much of this can be remedied somewhat through education and more clarity about what financial tools are actually available to help people understand what they need to do to be more financially resilient. Savings are accessible to all – anyone can save, even if it’s just putting GBP10 aside each month. Making it a habit means you quickly start to build a financial buffer – not just for now, but for the long-term as well.”