Money worries stretch way beyond families struggling to make ends meet during the cost-of-living crisis, a report into financial wellbeing has revealed.
For research carried out by Arbuthnot Latham found that 81% of the UK’s wealthiest individuals also feel regularly stressed or worried about their finances.
The private and commercial bank commissioned Atomik Research to conduct a survey of more than 500 UK residents with investable assets of at least £100,000, including 40% with a net worth (excluding property assets) of at least £500,000.
Its Financial Wellbeing Report 2024 ‘Healthy, wealthy and wise’ confirmed that financial security doesn’t necessarily equate to financial wellbeing.
It said: “We are a nation of worriers. 87% of people we surveyed worry about the health of the economy, while 81% reported feeling regularly stressed or worried about their finances. Our findings paint a concerning picture for peoples’ overall financial wellbeing.”
The research found:
- 51% of people are worried about maintaining their lifestyle in later life
- 39% are concerned about preserving the value of their investments
- 25% worry about providing for future generations
The report also found the average pension pot required for financial peace of mind is £900,000, but nearly 40% of respondents to the survey said they didn’t know how much money they have saved so far.
And this lack of awareness extended to estate planning, with only 26% of people surveyed having taken measures to mitigate Inheritance Tax. The report’s authors were surprised to learn that 77% of the over-65s surveyed have not yet made any provision for managing their estate after they die.
Chris Allen, Director – Wealth Planning at Arbuthnot Latham, said: “Our research reveals significant gaps in peoples’ overall understanding of whether their pension savings will support a comfortable lifestyle, not considering important factors such as inflation, tax or long-term care. This will mean many will miss their target retirement age or have to downgrade their lifestyle expectations.”
A clear message from the research is that financial wellbeing is more than just having large sums of money. It’s a state of feeling secure and in control of your finances, both now and in the future.
Careful financial planning is the key to future financial certainty and regular reviews of your assets can help you be certain that you are on course to meet your goals.
The report said: “We believe there are huge benefits from being able to talk to a financial professional who can offer solutions and reassurance. As with our physical health, financial wellbeing requires work, effort, and long-term expert guidance to ensure we can fulfil our goals in life.
“Our research reveals that even for people who would typically be regarded as having more affluent wealth profiles, there is a long way to go to achieve genuine peace of mind with our finances.”
Arbuthnot Latham’s findings tie in with the Nudge Global Financial Wellbeing Report 2024, which found that across 17 countries it surveyed, people’s top goal is to ‘feel secure’ (94%) and people who feel financially confident are ‘two times more likely to have goals, ambitions and dreams for their life’.
At Cailean, helping our clients achieve financial security and peace of mind is our top priority. We work with you to develop a clear understanding of what you want to achieve with your wealth, then provide the expert advice to develop a financial strategy designed to help you reach those life goals.
For us, financial planning is about more than just numbers; it is about understanding how to live the life you desire. We integrate your personal aspirations into financial strategies.
A good first step on your financial planning journey is to try one of our ScoreMy scorecards, a superb initial evaluation tool that provides a starting point to establish clarity and awareness.
By scoring yourself on how you feel on various key elements of your life, including how worried you are about money and how you rate your mental and physical health and work-life balance, you may well find you have similar concerns to respondents to the financial wellbeing report.
Try ScoreMy here or contact us for a no obligation chat by emailing hello@cailean.co.uk or calling us on 0131 510 1971. Also read what our current clients say here.