As the Lifetime ISA (LISA) comes in to affect, Barnett Waddingham’s latest financial study reveals financial priority concerns and knowledge shortfalls amongst the UK.
- 65% of Brits admit to losing sleep over their finances
- 36% reveal their main financial priority is to save for a house
- The Lifetime ISA (LISA) comes into effect in April 2017 and only 40% of people are aware of what this offers
- 45% said they might contribute more to their pension if they knew their peers were paying more
- 40% of people do not receive any help from their employer regarding their financial concerns or goals
- 79% of Brits want financial education included in the workplace
- 65% would contribute more to their pension if they could afford to
The research reveals that only 40% of people are aware of what the LISA has to offer, despite respondents stating that saving for a house is their top financial priority (36%).
65% of the UK are losing sleep over their finances, however as pay cheques can only stretch so far, for many pensions are not top of the priority list. Only 17% stated pensions as their top financial priority, despite government communication initiatives, during the three years we have carried out this research there has been no change in priorities.
Although many see the value of pensions, affordability is a key factor with 65% stating they would contribute more to their pensions if they could afford to. 45% of people said they may contribute more to their pension if they knew their peers were.
Education remains all important with 79% of Brits wanting financial education included in the workplace, however 40% of people do not receive any help from their employer regarding their financial concerns or goals.
Damian Stancombe, Head of Workplace Health and Wealth at Barnett Waddingham, comments:
“We need stronger messages from Government and employers to educate individuals in the importance of staying in once auto-enrolled, understanding the importance of investment decisions and contribution levels, through to the decision-making stages in later life on how to access pension savings on retirement.
“The challenge is that neither the workplace nor the workforce are in a position to rebalance affordability and aspiration. Pensions are not a priority – employees can’t afford to save for retirement and employers are not doing enough or don’t see the value in engaging the transient younger generations. In the future this will put overwhelming pressure on the already uncertain State Pension.”