Financial advisers should be looking to target more “vulnerable” clients with 31% of British workers admitting finances control their life, according to a survey.
Research carried out by pension and investment company Aegon revealed that some UK citizens feel that financial wellbeing is unattainable.
The report suggests that there are some people who need help with their financial affairs, as over a third (36%) of respondents said that they wouldn’t be able to handle a major unexpected financial emergency, such as paying for a new boiler or an unforeseen dental bill.
Kate Smith, head of pensions at Aegon, said: “Our research paints a worrying picture of the UK’s financial health and individual’s ability to manage their money.
“Good financial management sits hand in hand with positive financial wellbeing and it is concerning to see that so many people are unable to live life to its fullest as a result of how they are managing their money.”
Aegon defined financial wellbeing as “people’s control over their finances, their ability to respond to financial unpredictability and unexpected financial expense, and their ability to meet financial goals and make choices that allow them to enjoy life”.
Living life to the fullest
Figures show that poor financial management is having an impact on people’s ability to make choices that allow them to live life to the full, with three in 10 (30%) unable to enjoy life because of the way they are managing their money.
Around two in five (41%) of those surveyed said that they are concerned that the money they have now or save won’t last, impacting their ability to respond to future financial unpredictability.
Just under half (46%) of people under the age of 35 say they are doing everything they can to secure their financial future, compared to just over a third (37%) of people aged over 55.
Smith added: “There’s certainly a role for individuals when it comes to budgeting and saving for a rainy day, but I believe that employers can be doing more to support their staff with their finances.
“This includes offering better and more frequent financial education in the workplace, improving understanding about managing money and contributing more to employee pensions.
“With the right tools and support, people can plan their financial future with confidence, paving the way for increased financial wellbeing.”
Aegon surveyed 2,000 UK employees across a range of sectors, company sizes and job roles.
