Only 4 per cent of Britons say they have no concerns about the state of their finances, with the vast majority not feeling completely comfortable regardless of their monetary position.
Meanwhile, 43 per cent said they are actively worried about their financial situation, exclusive data from Schroders Personal Wealth reveals and a further 19 per cent said they are ‘very concerned’ about their financial future.
The continued tough economic climate – combined with recent wage growth lagging inflation – is largely to blame for the public’s money worries, as 35 per cent fear they won’t be able to afford food or basic household bills on a monthly basis.
Even those with strong finances might still feel the strain, Vanessa Hubbard, personal wealth adviser at Schroders Personal Wealth, warns.
She said: ‘They may feel the pressure of managing wealth they’ve never had before or worry about potential future changes, such as the cheap fixed rate mortgage deal coming to an end or upcoming tax changes.’
While the number of people concerned has remained largely stable since 2023, the number of people concerned that they can’t afford the basics has risen by 10 per cent.
However, future finances are also weighing on minds as 23 per cent said their chief concern was not saving enough to retire, while 17 per cent said they are worried they won’t be able to contribute enough money to their savings.
Widespread worry: As many as 86% of people have some form of financial concerns
Finance worries hit health
Of those concerned about their finances, more than half said the worry had affected their mental health, with anxiety and stress among the top problems resulting from stretched finances.
Almost a third also said their physical health has been affected, with people finding it more difficult to sleep and experiencing headaches.
The burden appears to fall heavier on men, with 54 per cent affected mentally compared with 48 per cent of women.
‘One reason why this may be the case is that financial concerns often affect men and women differently due to societal expectations and roles,’ Schroders Personal Wealth said.
‘Men may feel a heightened sense of responsibility to provide financially, which can lead to greater mental stress when they perceive their ability to do so is threatened.’
Despite this imbalance, the data indicates that people are still most likely to turn to their partners for financial advice, with 33 per cent doing so, compared to just 6 per cent who choose to consult a financial adviser.
Hubbard said: ‘These findings emphasise the need for comprehensive financial planning and support services.
‘By addressing financial concerns and providing effective strategies to manage finances, we can help alleviate the mental and physical burdens that financial stress imposes on individuals.
‘This, in turn, can lead to improved overall wellbeing and a better quality of life for those affected.’
People are looking to act
Given the concern shown regarding people’s finances, it is perhaps unsurprising 41 per cent of people view sorting out their financial situation to be their top priority, with a further 48 per cent viewing it as somewhat of a priority.
Just three per cent of people think their finances are not a priority at all and eight per cent said they were a low priority.
The most common financial goals are to create an emergency fund – a priority for 39 per cent of people – while 35 per cent want to become debt-free and a further 21 per cent are aiming to contribute more to their pensions.
Alice Harmer, personal wealth adviser at Schroders Personal Wealth, said: ‘It’s crucial to have a financial safety net, such as an emergency fund, to help you manage unforeseen events like if you are unable to work, become critically ill or pass away.
‘Consider having something in place to help you and your family to cope with this financially.
‘My advice would be to always have a plan. Know your finances and what you need.
‘It’s much easier to cope in financial uncertainty if you really understand what you actually need to pay the bills and have a nice quality of life.’
‘Achieving financial goals requires more than just good intentions; it needs a well-thought-out plan and the right guidance.’
Professional advice doesn’t come cheap. It will probably cost between £500 and £5,000 depending on what you need to do, according to financial adviser directory Unbiased.
Our guide to one-off financial advice and costs can help you understand more.
However, an initial meeting is likely to be free of charge, and a good adviser should clearly set out what costs you should expect to pay if you continue to use their services.
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