People with a financial plan are almost twice as likely to be on track or ahead of their goals, new research from St. James’s Place has shown.
According to the firm’s Real Life Advice Report, 78% of those with a structured financial plan, including defined goals and timelines, feel on track when it comes to achieving their savings and investment goals, compared to 45% of those without one. Despite this, only 42% of adults have a plan in place.
While almost nine in 10 (87%) of those saving towards a goal say it motivates them, just 22% are currently saving or investing towards a specific target. For almost two fifths (37%), the barriers are psychological, with 15% admitting planning feels too complicated, while 12% believe it would cause stress and 10% avoid thinking about money entirely.
Claire Trott, head of advice at St. James’s Place, said: “January is when many people feel motivated to take control of their finances, but good intentions alone rarely deliver long-term change. Our research clearly shows that having a structured financial plan makes the biggest difference, providing clarity, discipline and a framework that keeps people on track even when life gets busy.
“With defined goals and a plan to follow, people are far more likely to make consistent progress and feel confident in their financial decisions. Advice then builds on that foundation, offering guidance and reassurance to help people stay focused on what truly matters to them over the long term.”
The research showed that 95% of people receiving ongoing advice say it helps them reach and stay on track with their goals and advised individuals are far more likely to feel that their saving, spending and investing aligns with their wider life aspirations.
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