more crucial than ever?
More than half of individuals have yet to formulate a financial strategy, as per the findings of a recent survey. Interestingly, those under the age of 34 exhibit a greater inclination towards financial planning when compared to their counterparts aged 55 and above, as revealed in research commissioned by St James’s Place.
The survey, which encompassed a broad demographic, unearthed the fact that a substantial 59% of respondents have not embarked on any form of financial planning for their future. This includes initiatives like proactive savings or pension schemes and home purchases.
Approximately 41% of respondents, however, indicated that they do have a financial plan in place. Notably, individuals below the age of 34 displayed a significantly higher propensity for such planning, with 61% of them reporting an active financial strategy, as opposed to only 27% among those aged 55 and above.
Further analysis of the data revealed that nearly two-thirds (65%) of those with a financial plan have witnessed a growth in their overall wealth over the past decade, a figure that contrasts with a lower 38% among those without a structured plan.
Of those who have devised a financial plan, the majority (67%) disclosed that they have sought professional financial advice.
The survey also brought to light that 25% of respondents had not reviewed their financial outflows in the preceding six months. Meanwhile, three out of every ten individuals (31%) had not recently assessed the potential for securing better rates on their savings.
Similarly, the same proportion (31%) had not explored the possibility of securing more advantageous deals on their household expenditures, such as broadband, gas, or electricity bills.
Interestingly, a positive impact was observed among more than half (57%) of those who investigated improved savings rates, while 50% reported similar success in identifying savings on household expenses.
Furthermore, nearly half (47%) of those who took the time to scrutinise their financial outlays reported experiencing a positive impact.
In these times when numerous external factors remain beyond our influence, the importance of taking charge of those aspects within our control cannot be overstated, as emphasised by Alexandra Loydon, Director of Engagement and Consultancy at St James’s Place. She commented, ‘Unfortunately, the year 2024 is expected to present ongoing challenges, which is concerning given the financial strain many have already endured over the past year. When confronted with circumstances beyond our control, it becomes even more imperative to assert control over the aspects where we can make a difference.’
The survey, conducted by Opinium, surveyed a total of 6,000 individuals across the UK during the month of October. Without a solid financial plan in place, individuals are essentially leaving their loved ones exposed to financial uncertainty, a situation that becomes even riskier given the current inflationary environment. In such circumstances, the significance of life insurance cannot be overstated.
Considering the relentless rise in inflation rates, the value of a life insurance policy becomes even more pronounced. Inflation erodes the purchasing power of money over time, making it essential to have a financial instrument that can keep pace with these increasing costs.
Given these factors, it becomes a prudent choice for individuals to include life insurance as a fundamental component of their financial strategy. The risks associated with leaving one’s family without financial cover in the face of inflation are simply too significant to ignore.
At TopQuote, we believe in helping you recognise the true value and necessity of life insurance. It’s about protecting the future of your family, securing their financial stability, and ensuring that your legacy is preserved, no matter what life throws your way.
Whether it’s safeguarding against unexpected financial burdens, planning for your children’s future, or ensuring that your mortgage isn’t a worry for your loved ones, life insurance stands as a testament to your foresight and care for your family. It’s not merely about mitigating risks; it’s about embracing responsibility and providing for the future, even when you’re not there to see it.
St. James’s Place. (n.d.). Tackling poor financial health. [online] Available at: https://www.sjp.co.uk/news/tackling-poor-financial-health [Accessed 12 Jan. 2024].