Over half of UK adults say the significant events of 2016 had a real influence on how they managed their finances
16% said their main reaction was to put off making some important financial decisions
Over one in ten made building a bigger savings buffer their main response
Top financial goal for people in 2017 is to save more than they did in 2016
However, the events of 2016 also drove some people to take action, with almost one in ten (9%) responding by becoming more proactive and taking more control of their finances. In addition, one in ten (9%) responded to the uncertainty by focusing on being more prudent and cutting costs where possible, while 12% said saving more became their priority, and they created a bigger buffer against any potential bad times ahead.
Financial goals for 2017
The research also revealed that the most popular financial goal for 2017 is to “save more than in 2016”, with saving up for big ticket items like a holiday popular too. Almost one in five (18%) UK adults are planning to tighten their belts and cut costs in 2017 and for some (16%) paying off debts is a priority.
Uncertainty and the markets
When asked if all the uncertainty and change experienced in 2016 had altered how likely they were to invest in stocks and shares, 6% of UK adults said they were more likely, 7% said they were less likely and 20% said it hadn’t changed anything for them. Over 55% said they don’t invest or plan to invest in stocks and shares and a further 11% said they hadn’t given it much thought.
The research also found that almost a third (30%) of UK adults still have no idea how much money is in their pension, and the majority are out of touch with how stock markets performed in 2016. Just one in five UK adults (21%) recognised that stock markets mainly climbed over the course of the year and almost a quarter of adults (24%) wrongly believe that the markets mainly fell.
Commenting, Jamie Jenkins, personal finance expert at Standard Life said: “It seems inevitable that the major events of 2016 would have an effect on people’s approach to financial planning and our research shows that some people put off making important financial decisions, while others were driven to save more, which remains the most popular goal for 2017.
“Aiming to save more and build a solid buffer is always a good thing, and the start of the year is a good time to make a plan to see how much you can regularly tuck away. But it’s not just how much you save, it’s where you save that’s important too. So look for the best rates on savings accounts and ISAs, and look beyond traditional savings too, to the opportunities offered by investing.
“By the end of this year, almost every business in the UK will have to provide a workplace pension scheme. That means many more people working for the country’s smallest businesses will be automatically enrolled in their workplace pension, joining over 7 million people who have already made a good start with their pension savings. Everyone should look to make the most of the opportunity that provides.”
|
