According to a new study by Standard Life Aberdeen, three in five (59%) adults in the UK admit feeling less financially secure because of Covid-19.
In relation to the UK’s adult population, this means that more than 31 million are now more concerned about their finances than they were before the pandemic. Only one in ten (10%) feels better off.
Almost half (48%) say they are worried about their current financial situation, while a third (33%) say they don’t like thinking about their long-term financial future.
Al Ward, Head of Customer Savings at Choices at Standard Life Aberdeen, said: “It is understandable that many will be worried about money given the past year, especially considering the level of uncertainty the pandemic has brought.
“Planning ahead and saving for the future may seem a lot more complicated, but it’s so important that uncertainty doesn’t get in the way of keeping track of finances.” While savings rates can be low and the markets are at risk of volatility, the fact remains that dividends are likely to pay off in the future if you can invest them over a longer period of time. “
Standard Life’s research of more than 2,000 UK adults also found that people between the ages of 35 and 54 experienced the greatest negative change in their financial attitudes.
When Standard Life compared the results to the same pre-pandemic survey, there was a significant decrease in this age group who felt organized about their finances (71% vs 59%) and felt secure about their debt (61%) % versus 51%)%).
Although the British feel less financially secure overall, the pandemic appears to have sparked a greater interest in long-term saving and investing among millennials (25-34 years old), while Gen Z (18-24 years old) are now feeling more confident about investing .
Younger investors (18-34 years old) today keep most of their money in investments compared to any other age group, investing an average of 45% of their money. Looking ahead, 60% say they also plan to increase their investments in the future.
Al Ward said: “It is encouraging to think ahead about young people and understand the need for longer term investments. Obviously, this age group is now more open to exploring the opportunities that are available to them to maximize their future prosperity.
“If you are unsure about your finances, consider speaking to a professional advisor for greater confidence over the long term. They can help you understand what is right for you now and help you plan to meet your financial goals for the future. “