The pandemic has prompted a growing number of UK adults to feel less financially secure, according to new research from Standard Life Aberdeen.
Three in five (59%) adults admit to feeling more anxious about their finances now compared to before the pandemic the study showed. In contrast, just one in ten (10%) feel better off.
Furthermore, almost half (48%) of adults worry about their current financial situation, while a third (33%) don’t like to think about their long-term financial future.
Al Ward, head of customer savings at Standard Life Aberdeen, said worries about money are “understandable” following the uncertainty of the pandemic.
Ward said: “Planning ahead and saving for the future may seem much more complicated, but it’s so important that uncertainty doesn’t get in the way of staying on top of finances. Although savings rates may be low, and markets are at risk of volatility, the fact remains that if you can invest money for a longer period of time it is likely to pay dividends in the future.”
Standard Life Aberdeen said adults between 35-54 years of age experienced the greatest negative shift in their financial attitudes with 59% feeling organised about their finances compared to 71% before the pandemic. Meanwhile, 51% reported feeling confident in their levels of debt, versus 61% pre-pandemic.
Upside among millenials
Despite this, the research discovered greater interest amongst millennials aged 25 to 34 when it comes to long-term saving and investing. Younger investors between 18 and 35 now hold the greatest proportion of their money in investments versus any other age group, investing on average 45% of their money. Looking ahead, three fifths (60%) plan to increase their investments in the future.
Ward added: “It’s encouraging to see forward thinking in young people and an understanding of the need for longer-term investments. Clearly this age group is now more open to exploring the opportunities available to them to maximise their future wealth.”
