Financial fears: over two fifths (45%) of UK worried about their financial future

According to the latest research from Aldermore’s 2017 Annual Savings Tracker, over two fifths (45%) of the nation is worried about its financial future. This is against a landscape of rising inflation, historically low interest rates and subdued wage growth, making saving much harder for many.  

When examining sentiment across the regions, Londoners are the most concerned about their finances, with over half (53%) saying they are worried and over a third (38%) believing their current financial situation is not viable for the future. On the other hand, those based in Yorkshire and Humber seem to be the least concerned in the UK; with fewer than one in four (23%) believing their situation is unsustainable.

The findings also revealed that it is the younger generation (18-24 year olds) that are the most concerned about their finances compared to any other age group. Over six in ten (61%) are worried about their financial future and over two fifths (44%) see their current financial situation as untenable. In contrast, just over a quarter (28%) of 65-74 year olds feel the same way.

Karina Oakes, a 23 year old living in London, is currently saving £400 a month, but still has concerns over her financial future: “I try and save as much as I can into a savings account and an ISA each month, but it is becoming very difficult to build a pot with the increasing cost of living in London.

“Sometimes I feel disillusioned about my savings pot and financial future as my main goal of saving for a house just feels so out of reach at this moment in time. Despite this, I understand the value of saving and it is an important way of reaching my main goals.”

Commenting on the study, Ewan Edwards, Head of Savings – Aldermore says: “It is evident there is a clear savings gap in the UK, with over half (56%) of the nation believing it is currently not saving enough and three in ten (30%) people believing their financial situation to not be sustainable.

“We understand that everyone’s situation is different, so it is important for people to adopt a savings habit that is right for them which can help them to reach their own personal goals. However, the most important message coming out of this research is the need to save regularly, no matter how big or small the amount.

“We also encourage consumers to shop around for the best rates – particularly following the recent Bank of England Base Rate increase - on the market to make sure their savings work as hard as they do and to help them reach their goals.”