Long-term planning is non-existent for the majority of Britons with 7 in 10 adults admitting they have no plans in place for their retirement, a new report by digital wealth management firm Moneyfarm reveals.
More than three quarters (77 per cent) of the population are completely unprepared for life after retirement, meaning 39.8 million people face an uncertain future. Women feel less financially prepared than men (39 per cent compared to 26 per cent). When it comes to planning ahead, 77 per cent of adults don’t think further ahead than five years, while a third (31 per cent) of the population fail to plan more than six months in advance.
The ‘Decodes…. Short-Termism’ study was conducted by Moneyfarm, with the help of behavioural scientist Ivo Vlaev, professor at Warwick University, and a panel of leading experts** from the fields of science, psychology, and trends. It explores the short and long-term behaviour, thinking and actions of over 1,000 UK adults in relation to all aspects of modern life. The report is available to download here.
Despite the widespread lack of planning, retirement was still the top concern for Britons in 2018, followed by weight loss, with 23 per cent aiming to lose weight over the coming years. However one in five Brits (21 per cent) admit to having no long-term plans at all, whether health, career, financial or family-related. According to the study, 63 per cent of adults live only for the moment rather than planning for the future and more than one in four (27 per cent) feel ‘powerless’ over the direction of their lives.
“It is natural for people to prioritise the present over their future, but we are in danger of creating a nation that is addicted to the quick-fix of instant gratification at the expense of important but basic long-term life goals such as health, wellbeing and financial security,”said Professor Vlaev.