Study reveals UK's biggest financial regrets
A survey carried out by Partnership has revealed the UK’s biggest financial regrets, a list that includes failing to save enough when younger, accepting poor advice from friends and overloading on debt.
The study, which assessed the sentiments of over 2,000 adults, found that 40% regret failing to save enough money; however, when taking into account only 18-39 year olds, exactly half (50%) of those surveyed admitted that they lament the fact they failed to set aside adequate sums of money in the past.
If you are behind on your savings and want to discuss the many ways that could help you get back on track, speaking to an independent financial adviser can help.
According to the results of Partnership's research, almost 1 in 5 (19%) admitted that were they able to turn back the clock they would ensure they saved more into their pension, rising to almost 1 in 4 (22%) when considering only those over the age of 40.
1 in 10 confessed that they have taken poor financial advice from friends or family and admitted that, with hindsight, they would not make the same decisions with their money again.
The top eight financial regrets are listed below:
We spoke to John Cole, an IFA at Paterson Financial Planning Ltd, to get his take on why many thousands of people throughout the UK ignore the need to prepare for retirement.
“One recurring theme that I have observed over the years of advising clients is that they will often make it easy for themselves not to plan for retirement,” admits Cole.
“They will readily recount stories they have heard in the papers or anecdotal ‘research’ from friends or colleagues which reinforce their assumption that pensions are no good, so they may as well bury their head in the sand for a wee bit longer.
“In reality pensions are a great way to save for retirement, but regardless of this fact, it doesn’t get away from the requirement to save while you are working in order to have an income when you are not working (retired). If not a pension, what are you going to do?
“This reluctance to look to the future is not just pension and retirement related: it is also incredibly difficult to get clients to engage with family protection issues and protecting their income, for example, and this is evidenced by the often quoted ‘protection gap’ that exists in the UK.
“There are many ways that an adviser can help a client plan, and all advice would be tailored to their individual circumstances and objectives. A discussion with an adviser could bring the process to life a bit for them.
“Whether a client is interested in ethical investing or investing in commercial property using their pension funds, there are a range of solutions available that can help spark an interest in the process of saving for retirement, and that can help broaden the appeal for savers.”