Britons increasingly worried about financial wellbeing

According to data from Schroders Personal Wealth, a striking 43% of respondents admitted to actively worrying about their financial standing, while an additional 19% indicated they are ’very concerned’ about their future financial wellbeing.

The context of these worries is largely related to the ongoing tough economic climate; 35% of those surveyed fear they may not be able to afford food or basic household bills on a monthly basis, accentuated by recent wage growth not keeping pace with inflation.

Vanessa Hubbard, a personal wealth adviser at Schroders Personal Wealth, noted, “They may feel the pressure of managing wealth they’ve never had before or worry about potential future changes, such as the cheap fixed rate mortgage deal coming to an end or upcoming tax changes.”

Despite the overall stability in the number of individuals concerned about their finances since 2023, the data indicates a 10% rise in those specifically worried about affording basic necessities. Furthermore, anxiety surrounding future savings is prevalent, with 23% of respondents citing a lack of savings for retirement as their primary concern, and 17 per cent fearing insufficient contributions to savings accounts.

These financial worries extend beyond mere economic considerations; over half of those concerned reported that financial anxiety has adversely affected their mental health, with stress and anxiety identified as common issues.

In addition, nearly a third revealed a negative impact on their physical health, struggling with sleep issues and headaches. Notably, the burden of financial stress appears to weigh more heavily on men, with 54% reporting mental health effects compared to 48% of women. 

The researchers from Schroders explained that “financial concerns often affect men and women differently due to societal expectations and roles,” suggesting that the pressure men feel to provide financially may heighten their stress levels.

In response to these financial pressures, individuals largely favour seeking advice from their partners, with 33% doing so, while only six percent choose to consult financial advisers.

Hubbard emphasised the importance of addressing such concerns, stating, “These findings emphasise the need for comprehensive financial planning and support services. By addressing financial concerns and providing effective strategies to manage finances, we can help alleviate the mental and physical burdens that financial stress imposes on individuals.”

Amidst these worries, the drive to improve personal financial situations has gained traction. The survey revealed that 41% of participants view organising their finances as a top priority, with an additional 48% considering it somewhat critical.

Eight percent believe that financial management is not a priority.

The data indicates common financial goals among respondents: 39% aim to establish an emergency fund, 35% wish to achieve debt-free status, and 21% plan to increase their pension contributions. 

Alice Harmer, also a personal wealth adviser at Schroders Personal Wealth, added, “It’s crucial to have a financial safety net, such as an emergency fund, to help you manage unforeseen events like if you are unable to work, become critically ill or pass away.” 

She advocates a pro-active approach towards financial planning to navigate uncertainties effectively, emphasising the importance of understanding one’s financial needs to manage basic bills and maintain a quality lifestyle.

The costs associated with professional financial advice can range significantly, estimated between £500 and £5,000 depending on the services required, as reported by adviser directory Unbiased. However, many financial advisers offer an initial meeting free of charge, with clear cost outlines for any subsequent services.