"It is concerning that nearly one in five people have no clear idea of what they want their finances to achieve."
- Kevin Brown - Scottish Friendly
New research from Scottish Friendly has found that almost one in five UK adults do not have a long-term financial goal or plan in place.
According to the mutual’s latest Family Finance Tracker, 18% of those surveyed said they did not know what they wanted their finances to achieve over the next five years or more.
This figure rises to 30% among those with household incomes up to £25,000, although it falls to 7% among households earning between £50,000 and £75,000, and 5% among households with incomes above £75,000.
The tracker also found that different life stages impact people’s focus on the future, as 96% of parents with children aged between one and four, and 94% of parents with children aged five to 10, said they have identified a longer-term financial priority.
91% of parents with children aged 11 to 15 and 86% of those with children aged 16 or 17 say the same. This falls to 76% among parents with adult children still living at home and 74% among parents whose adult children have left home.
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"It is concerning that nearly one in five people have no clear idea of what they want their finances to achieve," Kevin Brown, savings expert at Scottish Friendly, said. "It is hardly surprising, yet no less concerning, that this rises to almost one in three among those on lower incomes.
"Long-term direction is not only for those with substantial sums to save, since where budgets are tighter, being clear about future priorities can matter even more, even if immediate costs leave little room to act.
"It is also noticeable that parents become less likely to identify a financial priority as their children grow older. That may reflect familiar goals changing as families move beyond education costs and support into adulthood."
