Emotional stability plays a key role in helping people financially prepare for the future, according to Aviva.
While only just over half (57%) of people feel financially on track, Aviva’s research found personality types who display high levels of emotional stability and confidence are much more likely to feel confident.
Aviva’s report ‘Evolving in the Age of Ambiguity’ identified four different personality types:
• spontaneous survivors who work well under pressure;
• apprehensive achievers who are determined and disciplined but can struggle under pressure;
• resilient completers who are confident and good under pressure but dislike sudden change; and
• impulsive worriers who are less organised and resilient but highly motivated.
The findings showed that nearly three quarters (71%) of those dubbed resilient completers and 61% of spontaneous survivors consider themselves financially prepared for the future, compared to 42% of those deemed impulsive worriers. Apprehensive achievers are also less likely (49%) to feel they are on the right path to achieve their desired future lifestyle.
Alongside the links between financial preparedness and personality types, the report also identified five attributes that can influence financial wellbeing including good physical wellbeing, confidence in their ability to support themselves, feeling prepared for unexpected events, the ability to find ways to make sure managing finance is stress free and ensuring their current financial situation doesn’t adversely affect their mental health. Someone who rates highly in all of these attributes will feel better placed to handle their financial future, according to Aviva.
Laura Stewart-Smith, head of workplace savings and retirement at Aviva, said: “It will be surprising to some people that emotional wellbeing and confidence are such important factors in feeling that your finances are on track. It’s sometimes tempting to hold back from taking the time to plan out your finances because you’re not the most proactive planner or the most meticulously organised person.
“I hope these findings will restore people’s faith that, whatever their comfort at tackling money matters, there are things they can do to provide peace of mind and cultivate a feeling that a better financial future is within reach.
“It would be beneficial to so many employees if businesses could apply this knowledge to support their employees’ financial wellbeing and encourage them to empower themselves. Helping people to build the foundations to feel in control of their financial future can have a positive effect in much broader areas of life.”
Aviva said employers can help employees by providing access to financial education and encouraging staff to have a plan of action that will help them take control of their financial future. In addition, employers should signpost guidance and advice services and review their organisation’s values, leadership behaviours, HR policies, benefits and how empowered managers feel to support their teams.
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