General Insurance Article - One in five of fifty somethings feel financially confident


Research from Just Group finds that only a fifth (22%) of fifty-somethings said that they were confident in purchasing and managing financial products such as savings accounts or pensions – the lowest of any UK adult age group.

 The research, which is part of an in-depth look at how the UK population thinks and feels about property wealth, also highlighted that people in their 50s have reached a ‘pessimistic peak’. Nearly half (46%) of people aged 50-59 believe the property market will decline over the next twelve months, while 54% anticipate that the UK economy will get worse.

 It’s not just wider economic factors that concern this age group with a quarter also believing that their own financial situation will deteriorate in the next 12 months. The main reasons behind this fear are Brexit (63%) and changes in salary (29%), maybe driven by job security anxiety increasing towards the end of their career or moving into part-time or lower-paid work.

 More than half of fifty-somethings (52%) that do not feel financially well-prepared are also unsure if they will have enough to retire on, while four in ten (42%) said they do not know what their income will be in the long-term.

 Perhaps because of this pessimistic outlook, achieving economic security is a major priority for fiftysomethings as they approach retirement. A third (34%) said preparing for later life (including the provision of long-term care arrangements) was ‘very important’ to them and half said it was ‘quite important,’ higher than any other age group.

 These survey results suggest advisers are right to focus their attention on this age group, says Stephen Lowe, group communications director at Just Group, but more needs to be done to help those falling through the gaps in the system.

 He commented: “Many people in their fifties find they are taking care of the generations above and below them as the demands of raising children and supporting elderly relatives often coincide for this age group. So, it’s not surprising this group takes the gloomiest view of both their own financial situation and wider economic factors. On top of this they are also starting to worry what their quality of life will be in retirement.

 “Preparing for retirement is a pressing concern for this group but we found only one in five felt financially confident – leaving them unsure how to put a plan in place. Advisers are uniquely placed to help this age group and ease some of the pressure that comes from juggling demanding day to day responsibilities alongside longer-term financial plans. 

 “For those in their 50s who can’t afford or are unwilling to pay for professional advice, they should at least speak to Pension Wise – the government’s free, independent and impartial guidance service. It’s clearly not as valuable as regulated advice but it will help thousands of people with the basics and provide a valuable defence against some of the scammers targeting vulnerable customers. With such a high proportion of people saying that preparing for later-life is important, booking a free 30-minute session to help make sense of their finances and options seems a wise choice.”
 
   

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