What makes clients feel financially secure?
5 September 2018
Pensions advice specialist Portafina has found that having savings is the leading factor behind making clients feel financially secure.
In a survey exploring the financial achievements and life goals that help people’s financial confidence, an overwhelming 72% cited savings. The average amount of savings that those polled said they would need to feel stable was £34,254.47. According to HMRC, the average ISA saving is £21,339.
The findings revealed that owning a house (65%) ranked second on the list, followed by having no debt (53%). It found that those who own a home are 37% more likely to feel financially secure than those who rent.
Having more money coming in than going out ranked fourth on the list for 35% of respondents, while having a rainy-day fund scored 28%.
Commenting on the research, managing director of Portafina, Jamie Smith-Thompson said: “It doesn’t come as a huge surprise that the top three things that make people secure are financially rooted. Yet, most importantly, knowing where you stand with your finances can help you focus on your plans and the bigger picture overall. Whatever you have, being organised is key to being financially secure.”
Portafina recommended three tips to help people become more financially secure; budgeting, having a rainy-day fund and shopping around to manage / reduce debt.
Money aside, Portafina also found respondents rated having a steady, long-term job as a key factor in making them feel secure (46%), followed by being in a long-term relationship (42%). Having close family relationships, marriage and living near to family were also rated as important. Interestingly, women were found to feel more secure than men if they have a close relationship with their parents and children or live near to family.
Top 10 financial ‘must haves’ to make people feel secure financially:
1. Savings (72%)
2. Owning a house (65%)
3. Having no debt (53%)
4. Having more money coming in than going out (35%)
5. Having a rainy-day fund (28%)
6. Being able to own a car (26%)
7. Not hitting zero in your bank account (21%)
8. An empty credit card/not maxed out credit card (19%)
9. Not using your overdraft (17%)
10. Knowing you can afford to help your friends/family financially without it impacting your own life (15%)
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