People are more worried than ever about money and making sense of financial products like savings accounts, according to a financial planning survey.
To coincide with Financial Planning Week which runs from 22 to 28 November, the Institute of Financial Planning (IFP) teamed up with National Savings and Investment (NS&I) to survey 2,000 people about their personal finances.
This found that 43 per cent of people worry about money ‘more often than not’ and 17 per cent worry about it ‘all the time’. Just three per cent of respondents said they ‘never worry about money’, a drop from 2009 when 12 per cent said they rarely worried about money.
Significantly, 87 per cent of the survey respondents said they would be encouraged more towards saving if products were easier to understand or more flexible.
Compared to surveys carried out in 2008 and 2009, fewer people said they had identified financial priorities and had put plans in place to achieve them. In the 2010 survey 14 per cent had financial goals they are working towards, compared to 26 per cent in 2008.
Just under half of respondents said they find it difficult to make their earnings last until the next pay day, with single parents most likely to be struggling to make ends meet.
Sales director of NS&I, John Prout, said: “It’s important to make an honest appraisal of your financial situation on a regular basis, through assessing three key things; the value of your debt and/or assets, the interest rate you are paying or earning on these and whether you could manage financially if your income was to reduce or your outgoings to increase.”
Chief executive of the IFP, Nick Cann, said: “If people want to steer a financially smooth course through these challenging economic times, it would appear their chances look gloomy. Their best bet is not to have children – but of course that’s as ridiculous as it is negative and unrealistic.”
Cann said people needed real help to take control on their finances but added that the survey showed 84 per cent of respondents would not borrow or use a credit card to fund Christmas spending, indicating people did not intend to let their debt spiral out of control.
© Fair Investment Company Ltd