More than half want to be more financially resilient, but many consumers do not know where to start.
More than a quarter (26%) of adults say they are not financially secure, according to research released for Financial Planning Week.
Recent data from the Chartered Institute for Securities and Investment (CISI) shows around 54% want to be more financially resilient.
It is CISI’s Financial Planning Week, which encourages consumers to assess their money situations.
Figures from the Financial Conduct Authority show nine million adults rate themselves as having low financial capability.
The pandemic has put the financial resilience of consumers to the test, but there are plenty of simple steps savers can take to control their finances, according to financial experts Moneyfacts.
The website has told savers there is “no time like the present” to reassess their finances.
- Retirement age for one in eight older workers derailed by Covid-19
- Millennial investors put their money where their morals are
Rachel Springall, finance expert at Moneyfacts, says there are simple steps savers can take to get started on managing their money better.
These include using mobile budgeting apps, switching their savings to better paying deals and using a fee-free balance transfer card to spread the cost of purchases.
She also suggests starting early on pension saving, especially as the state pension age increases to 66 this week.
Springall adds: “Clearly the resilience of consumers’ finances will continue to be tested throughout 2020 and the impact of this year could well be felt many years to come.
“If consumers can put aside a little time, they could start to build a solid foundation for a brighter financial future with just a few simple steps.”
- Rise in retirees cashing in entire pension pots
- Find out more about interactive investor SIPP and pensions here
Andrew Neligan, chartered financial planner for Neligan Financial, says there tend to be three groups of consumers when it comes to money.
Neligan says there are those who “live for today”, those who feel confident about doing their own research, and those who need confirmation from an adviser, as they know what they want to do, but don’t know where to start.
He adds: “Doing nothing isn’t a sensible approach.
“A lot of our behaviours and beliefs around money comes from messages we received when younger and our parents’ attitude to money.
“If as children our parents enforced the scarcity of money then it often follows through as we get older and [we] are scared about losing it.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.