Saving for the Future Ignored by Brits
Financial neglect is a growing problem among Brits as new research reveals many are burying their heads in the sand when it comes to budgeting and saving.
According to the latest Priorities of Life Index by Scottish Widows, 17 million adults admit to neglecting their finances.
Of these people, 21 percent claimed they were unable to focus on savings as they had too much debt to feel financially secure, while 32 percent said they were not paid enough to have financial security.
A further 25 percent said they simply try not to think about money every day.
“Even though the recession may be officially over, the importance of having a financial cushion to fall back on is at the front of a lot of peoples’ minds,” commented Iain McGowan, Scottish Widows’ saving expert.
“Our financial security and savings are suffering as we struggle to prioritise what really matters when it comes to financial stability.”
Of the 19 million people in the study who said they would like to focus more on their savings, 60 percent claimed they were unable to do so at the moment because they could not afford to save more than they currently are.
While 33 percent said they were only able to focus on their short term finances at the moment, and 11 percent wish they had more time to focus on their money.
One third of people have less than two hours to devote to their most important priorities outside their everyday routine.
Research by the Money Sense Panel also showed young people hold unrealistic expectations of their financial future, possibly jeopardising how much they save.
The survey showed the average teen expects to earn £61,700 by their mid 30s, while the actual average earnings for people this age stands at £24,333.