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Savers feel more stressed about finances post-pandemic

26 May 2021
  • Three in five (59%) UK adults report feeling less financially secure because of the pandemic
  • Almost a third (33%) don’t like to think long-term about their finances
  • Those aged 34-55 reported the greatest reduction in confidence, though younger adults appear to have positively embraced longer-term saving and investing

Three in five (59%) UK adults admit to feeling less financially secure as a result of Covid-19, according to new research from Standard Life Aberdeen.

Based on the UK adult population, that means more than 31 million feel more anxious about their finances now versus prior to the pandemic, with just one in ten (10%) feeling better off.

Almost half (48%) say they worry about their current financial situation, while a third (33%) say they don’t like to think about their long-term financial future.

Al Ward, Head of Customer Savings at Choices by Standard Life Aberdeen, commented: “It’s understandable that many will be experiencing worries about money in light of the past year, particularly when you consider how much uncertainty the pandemic has brought.

“Planning ahead and saving for the future may seem much more complicated, but it’s so important that uncertainty doesn’t get in the way of staying on top of finances. Although savings rates may be low, and markets are at risk of volatility, the fact remains that if you can invest money for a longer period of time it is likely to pay dividends in the future.”

Standard Life’s research of more than 2,000 UK adults also found that those aged between 35-54 have experienced the greatest negative shift in their financial attitudes.

When Standard Life compared findings to the same survey carried out prior to the pandemic, there was a significant reduction in this age group feeling organised about their finances (71% versus 59%) and feeling confident in their levels of debt (61% versus 51%).

However, despite Britons feeling less financially secure overall, the pandemic does appear to have prompted a greater interest amongst millennials (aged 25-34) when it comes to long-term saving and investing, while Gen Z (aged 18-24) now feel more confident about investing.

Younger investors (aged 18-34) now hold the greatest proportion of their money in investments versus any other age group, investing on average 45% of their money. Looking ahead, 60% say they also plan to increase their investments in the future.

Al Ward concluded: “It’s encouraging to see forward thinking in young people and an understanding of the need for longer-term investments. Clearly this age group are now more open to exploring the opportunities available to them to maximise their future wealth.

“If you are uncertain about your finances then you might consider speaking to a professional adviser to ensure greater confidence in the long-term. They will be able to help you understand what is right for you now and help you plan to reach your financial goals for the future.”

ENDS

Media enquiries

For further information, contact:
Anna Penson
Anna.penson@citypress.co.uk
T: +44 (0)203 773 9545
M: +44 (0)774 214 2411

Methodology

Standard Life polled more than 2,100 UK adults via an online survey in November and December 2020.

About Standard Life Aberdeen

  • In April 2021, we announced our intention to rebrand to abrdn. The new name will be used for our publicly listed company and all client and customer facing businesses. The rebranding roll-out process for the new name and associated visual identity will begin in the summer and progress through 2021, alongside implementation of a full stakeholder engagement plan to manage the transition.
  • We are futurists, enabling our clients to be better investors.
  • Standard Life Aberdeen operates across three vectors that reflect how our clients interact with us:
    • Investments: Our global asset management business serving institutional and wholesale clients
    • Adviser: Our UK financial adviser business, providing services to wealth managers and advisers through our Wrap and Elevate platforms
    • Personal: Our UK wealth and savings business, combining our financial planning business, digital direct-to-consumer services and discretionary fund management services.
  • Headquartered in Scotland, we have offices in over 50 locations worldwide and employ around 6,000 people.