Almost two thirds of UK working adults don’t have a financial plan beyond the next 12 months, risking poorer outcomes in later life, says Fidelity International.
The findings from Fidelity’s Global Sentiment Survey show 64% of workers don’t have a financial plan beyond the next year, including 21% who say they only plan for the next few weeks or less. Two-fifths (43%) only plan months ahead.
Despite this, a significant number recognise the importance of addressing their longer-term financial needs, with 40% stating that increasing their savings and investments is their most pressing financial need.
Daniel Smith, head of workplace investing distribution at Fidelity International, said: “Having a clear financial plan can help people feel more in control of their money, provide greater confidence in decision-making, and improve overall financial wellbeing. Yet for many, knowing where to start – particularly when balancing short-term pressures with long-term goals – remains a challenge.
“Putting a plan in place doesn’t need to be complex, but it can make a meaningful difference – helping people feel more in control, make better-informed decisions, and feel more confident about their future.”
UK workers are also increasingly open to using digital tools to help address this gap, the research found. More than six in 10 (64%) say they would, or already do, use AI to understand how much they will need in retirement. Over half (54%) would consider using AI to support investment decisions within their workplace pension or to help with budgeting and short-term financial planning (52%).
In the past six months, just over one in 10 (13%) working adults have also spoken to a financial adviser, rising to around a fifth of those in their 20s (21%) and 30s (18%), suggesting the need for human interaction and personalised guidance remains.
Smith added: “What’s clear is that there is no ‘one-size-fits-all’ answer. Digital tools have an important role to play in helping employees understand their financial position and model different scenarios. However, many people continue to value the opportunity to speak to someone – particularly when making more significant or longer-term decisions.
“For employers, this presents a clear opportunity. By working with providers to offer a blend of digital support and human guidance, they can help employees take a more joined-up approach to their finances – supporting better outcomes for individuals.”
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