Almost a quarter (24%) of UK adults said they have no financial aspirations for the next decade, new research from St. James’s Place has revealed.
The figure is up from one in six (17%) who said the same last July.
The final chapter of SJP’s Real Life Advice Report highlights how sustained cost-of-living pressures and economic uncertainty are eroding people’s confidence in the future.
It showed that in December, one in five (21%) adults said they had no financial aspirations for the year ahead, up from just over one in six (13%) six months earlier.
Those aged 55 and over are the most likely to report having no financial aspirations, increasing from 25% in July to 36% in December. A similar trend was evident among those aged 35-54, where the number of people without financial aspirations doubled from 7% to 14% over the same time period.
Similarly, the proportion of 18-34 year-olds with no financial aspirations almost trebled from 3% to 8%.
SJP said regional disparities are stark, with Northern Ireland, the North East and Scotland consistently recording the highest proportions of people with no financial goals across all time horizons, while London was found to have the lowest of any region.
James Rainbow, CEO of St James’s Place Wealth Management, said: “Financial pressures are creating an ambition gap, with many people apathetic about financial aspirations and putting long-term goals on the back burner.
“That erosion of confidence – not just in the immediate future, but even when looking five or 10 years ahead – is concerning as the longer people delay, the harder it becomes to achieve the future they expect. This is particularly evident when it comes to retirement, with comfort in later life in more doubt as retirement saving slips down priority lists.”
“Our research shows how important advice can be in helping people to broaden their horizons, giving them the means and confidence to look beyond today’s pressures and plan for the future.”
Among those who do have personal and financial aspirations, saving remains the top ambition over the next 12 months (40%), five years (31%) and 10 years (22%). However, retirement saving has fallen down the list of priorities. In July, 11% of respondents said they prioritised building a retirement fund over the next year, rising marginally to 15% over a 10-year period. By December, this figure had fallen to 9% across both time frames.
Those receiving ongoing financial advice were found to be twice as likely to have a financial plan with clear goals and timelines and to prioritise long-term financial ambitions overall. Advised individuals are also more likely to include retirement funding in their outlook, with almost one fifth (18%) of those who receive ongoing financial advice viewing retirement as a priority over the next 10 years.
Rainbow added: “Having access to the right support at the right time, including new initiatives such as targeted support, aimed at tackling the gap between broad financial guidance and personalised advice, can play an important role in helping more people to adopt longer-term financial plans and stay focused on their financial future.
“In an environment where short-term concerns and immediate priorities increasingly dominate, advice will play a critical role in ensuring long-term goals, particularly retirement, are not overlooked.”
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