Research from Scottish Friendly has found that one in five (18%) UK adults do not have or cannot identify a long-term financial goal.
This proportion rises to nearly one in three among lower earners, with 30% of adults with household incomes of up to £25,000 having no clear financial priority for the future.
This compares to 18% of those earning between £25,000 and £50,000, 7% among households earning between £50,000 and £75,000 and 5% among those with incomes above £75,000.
The mutual’s research also shows how focus on the future changes as families move through different stages of life. Almost all parents of very young children have identified a longer-term financial priority, including 96% of those with children aged one to four and 94% of parents with children aged five to 10.
These figures fall to 91% among parents of children aged 11 to 15 and further still to 86% among those with children aged 16 or 17.
Kevin Brown, savings expert at Scottish Friendly, said: “It is concerning that nearly one in five people has no clear idea of what they want their finances to achieve. It is hardly surprising, yet no less concerning, that this rises to almost one in three among those on lower incomes.
“Long-term direction is not only for those with substantial sums to save, since where budgets are tighter, being clear about future priorities can matter even more – even if immediate costs leave little room to act.
“Although there is no single right objective, and priorities will evolve, having a sense of what money should support over time can give greater purpose to decisions made today.”
Main image: cathryn-lavery-fMD_Cru6OTk-unsplash
