New stats show
HSBC’s latest Power of Protection report, Facing the Future, reveals that consumers believe their finances will worsen over coming years, but families are not discussing their long term financial security and are unprepared for increases in living costs.
The study of 1,000 people in the UK looks at levels of financial security, and the importance of planning and preparation for a secure financial future. It found that more than one in four people in the UK (28 per cent) already feel constrained by their finances, with two thirds (35 per cent) expecting to become financially worse off in the next three years.
Many families do not have conversations about managing their money for unexpected events, with 44 per cent of families who are just about managing day-to-day never having had a conversation about their long term financial security. In contrast, the overwhelming majority of people (81 per cent) who have had a conversation about their long-term financial security are managing well.
Four out of five respondents (84 per cent) do not have an insurance policy which would cover regular costs if a family member has a serious illness or accident which would prevent them from working. Just under half (47 per cent) said their dependants would not be able to manage financially if they were unable to work.
Three quarters of people surveyed (75 per cent) have not considered putting a will or testament in place and 79 per cent do not have a retirement plan.
The majority of those interviewed see their family’s health and wellbeing (74 per cent) as most important to their own future. Despite this, over three quarters (88 per cent) feel they do not have enough money to look after their family’s health. Worringly, those who are regularly supporting someone financially already spend over half (54 per cent) of their disposable income on that person.
Michelle Andrews, HSBC Head of UK Premier & Wealth Insights says:
“Long-term financial planning allows people to be in the strongest possible position to support their families and achieve their own aspirations.
“We would encourage everyone to think about the future and regularly assess their financial situation. It’s important to understand both the positive and negative effects that expected and unexpected events can have, to ensure we can confidently plan for the future. Our staff are ready to speak with HSBC customers to help them understand the range of options available.”