Its findings from the latest Retirement Voice report highlight the ongoing strain on UK household finances, with 24% of people admitting they find their current financial situation difficult or very difficult to manage on their present income.
Among those who would struggle to cover an emergency expense, 15% would rely on credit cards, 4% would borrow from friends or family, and others would turn to overdrafts (2%), personal loans (1%), or payday loans and similar high-cost borrowing (1%).
Despite these challenges, many people are taking proactive steps to manage their finances, with 62% tracking their spending, 58% budgeting regularly, and 54% monitoring their savings. However, 10% of respondents admit they currently do not use any of these methods.
Gail Izat, Managing Director for Workplace and Intermediary at Standard Life, part of Phoenix Group said: “These findings highlight the ongoing financial pressures facing many households across the UK. While it’s encouraging to see individuals taking proactive steps to manage their money, there’s a clear need for broader support to help people navigate these challenges. Employers and providers have a unique opportunity to play a vital role in boosting people’s financial wellbeing.
“It’s impossible to overstate the value of good, secure work and a decent wage. This assumed, technology, engagement and education can work together to improve people’s financial wellness. One powerful option is embracing the potential of open finance. By integrating financial tools and platforms that provide employees with a holistic view of their finances, employers and providers can empower informed decisions. Open finance solutions can help individuals track spending, manage savings, and plan for the future all in one place.
“Personalised, target communications can also make a real difference. Providing tailored financial education and resources that address people’s specific needs, in a way that’s relevant to them, can boost confidence and lead to better outcomes. Whether it’s guidance on budgeting, saving for emergencies, or planning for retirement, personalised support can help people feel more confident and in control of their finances.”
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