As many as 5 million Brits risk future financial failure

An overwhelming majority of Britons share a serious concern for their long-term financial prospects, according to the Institute of Financial Planning (IFP).

As many as 24,000,000 men and women across the UK have consistently neglected to make appropriate plans for their long-term future and financial well-being, whilst 15% of the group studied make no plans whatsoever.

As many as 30.2million individuals (93% of participants) admit to worrying about their financial future, yet just 26% are making an effort to identify financial priorities and life goals and act accordingly to achieve them

Less than half of all Survey respondents have failed to draw up a financial plan of any sort and the same number say that they only occasionally stick to a clear budget

More worryingly, 28% are working to no budget whatsoever!

This enlightening new Survey, conducted by research consultancy YouGov and supported by NS&I (National Savings and Investments) was undertaken as part of the inaugural Financial Planning Week (8 -14 September 2008). The Week - perhaps the most important Personal Finance initiative ever to be staged in this country - seeks to raise awareness of the importance of planning personal finances in an effort to bring financial know-how to the lives of millions of Britons.

The YouGov Survey revealed that when it comes to topping up the piggy bank, a third of us are saving £100 or less each month, with 26% saving nothing at all. The Survey also revealed that 56% of us are struggling or falling behind with bills and other commitments. 15% routinely struggle to last out until the next payday and nearly two-thirds of those surveyed – that’s 19.1million - say that their household financial circumstances have got worse in the last six months. Yet Financial Planning is looked upon with a degree of fear and confusion, perceived to be something only wealthier households might entertain, despite the fact that basic planning techniques can be employed across every household budget. The IFP is looking to challenge these attitudes and to change the way in which consumers think about their lifestyles.

Reviewing the Survey results, what has become clear is that whilst a growing number of people are feeling considerable financial strain, they are failing to budget or take appropriate action to improve their situation.

Nick Cann, Chief Executive Officer at the IFP comments, “Far too many people are living for today, failing to plan for tomorrow and this is likely to result in great hardship for many in the longer term. We see Financial Planning Week as a significant opportunity to help people lead less stressful lives by taking better control of their finances and the Week creates an opportunity for everybody to do at least one thing to improve their own personal situation. By setting clear goals and priorities, and applying some simple Financial Planning techniques, we can help to ensure that they live the life they choose rather than becoming a victim of financial mismanagement.

“Our campaign will focus on lifestyle and attainable goal-setting, budgeting and cash-flow, as well as saving and investing, and the new website - financialplanningweek.org.uk - will set out very simply stages that everybody can follow, whether they are heavily in debt or in the very enviable position of not knowing what to do with their money. Financial Planning Week intends to give consumers confidence to take some positive action, a lot of which can be done without professional help. There will be occasions however when everybody needs some form of assistance and this too can be found by looking at the appropriate part of the website. We hope the Week will enlighten and give people a new sense of purpose and achievement.”

John Prout, Director at NS&I adds, "In the current financial climate, the squeeze on people’s disposable income is tightening, and both the IFP and NS&I recognise the widespread and growing need for all of us to plan our finances better; it is vital to ensure everyone is taking the right steps. The Study reveals that less than half of the people surveyed are managing to stick to a set budget, and as NS&I’s latest Quarterly Savings Survey shows, at least 1 in 10 of us have no savings at all. We see Financial Planning Week as an excellent way to encourage people to review their income and expenditures, each month, to ensure that they live within their means.”

For more information and as a focal point for the Week, the IFP has launched a dedicated website containing a host of generic information: financialplanningweek.org.uk.