More than four in 10 Britons do not feel financially prepared for any of the major life situations presented to them, according to research from Mattioli Woods.
It’s survey found while Brits recognised the importance of planning for their long-term financial future, many did not feel prepared for the major financial shocks and life events that could arise before retirement.
These included needing long-term care or support with everyday living, losing the ability to manage their own finances, supporting an ageing parent or relative, and experiencing a relationship breakdown or divorce.
In all, 44% of the 2,000 respondents polled by YouGov for the firm said they do not feel financially prepared for any of the major life situations presented to them.
The firm said this highlighted a significant gap between the desire to plan for the future and feeling ready for the financial realities that life can bring.
Middle-aged and women feel most uncertain
This sense of unpreparedness was particularly pronounced among those aged 45–54.
More than half (53%) of people in this age group said they did not feel financially prepared, compared with 32% of those aged 55 and over.
Women were also less likely than men to feel financially prepared for the future, with 48% saying they did not feel prepared compared with 40% of men.
When confronted with a list of major life events, respondents in Scotland (49%), the North West (49%) and Yorkshire (48%) felt the most financially unprepared, followed by the East Midlands (46%), South East (45%), South West (44%), West Midlands (43%) and the North East (42%).
In spite of these concerns, the findings suggested Britons recognised the value of planning ahead.
On average, respondents believed people should start making serious plans for their long-term financial future around the age of 28.
Amit Joshi, managing director of wealth at Mattioli Woods, said: “Many people understandably think about financial planning in terms of retirement and making sure they have enough money for later life. But our research shows the financial events people feel least prepared for can often happen much earlier.
“Needing long-term care, supporting an ageing relative, experiencing a relationship breakdown or losing the ability to manage your own finances can all have a significant impact on an individual’s financial security.
“These situations are difficult to predict and, understandably, are not always the things people want to think about when planning for the future.
“The fact that people believe serious financial planning should begin before the age of 30 shows there is widespread recognition that planning ahead matters,“ he added.
However, Joshi noted financial resilience was about more than preparing for a retirement date.
“A long-term financial plan should also consider what happens if circumstances change along the way,“ he continued.
“Thinking about potential care needs, family responsibilities and what would happen if someone could no longer manage their own affairs can help people and their families feel better prepared for the unexpected.
“No one can plan for every eventuality, but starting these conversations earlier can give people more time, greater flexibility and more options when circumstances change.”
