Millions of Brits admit neglecting their financial wellbeing

Some 17 million British people admit that they do not take their financial wellbeing seriously with one in five (21%) saying that their debt levels are too high to feel financially secure, new research published today (Thursday May 12) shows.

Some 19 million people say savings aren't high enough up the agenda and a third (33%) of people have under two hours per day to devote to life admin outside their everyday routine, the second annual Scottish Widows Priorities of Life Index reveals.
 
Brits are burying their heads in the sand when it comes to their finances, it suggests. Of the 17 million adults who cannot focus on their finances as much as they'd like, 21% said this was because they had too much debt to feel financially secure, 32% are not paid enough, and a quarter (25%) simply try not to think about money in their day to day lives.

‘Our financial security and savings are suffering as we struggle to prioritise what really matters when it comes to financial stability. We all know how important it is to save and make time to look after money worries, but a 35% of all of us admit our financial security or savings are not being prioritised nearly enough,’ said Iain McGowan, savings expert for Scottish Widows.

Of the 19 million people (38%) who say they are focusing less on their savings than they would like, some 11 million (60%) say this is because they can't afford to save more than they currently are, and six million (33%) only focus on their short term finances at the moment. While 11% of all Brits say the one thing they wish they had more time for was saving for the future.

But when it comes to prioritising essential life admin, one third (33%) of people have less than two hours to devote to their most important priorities outside their every day routine of working, eating and sleeping, with those between 35 and 54 years old having the least amount of time to do this.
Ideally, people would have an extra 3.5 hours each day to spend with their family, on their health and doing their hobbies, but their current lifestyle doesn't allow for this, the report says.
 
If people were given an extra day a year for life admin, 17% said they would use it to make sure their finances were in order, 14% said they would spend the time making a realistic budget, and one fifth (21%) said they would make sure they were paying the lowest household bills possible.
 
‘Even though the recession may be officially over, the importance of having a financial cushion to fall back on is at the front of a lot of peoples' minds, but time and money constraints prevent them from being able to do the things they need to in order to feel as secure as they would like. It's extremely worrying that so many people bury their heads in the sand. By carefully planning their finances for the future, they could avoid a lot of this worry in the long-term, explained McGowan.

‘We know money is tight for many people at the moment, but spending a bit more time on their finances instead of ignoring the problems can only serve to make them feel more financially secure in the future. And if you can manage to save a small percentage of your salary every month, building up to 12% a month when you can afford to, you can ensure that you're saving enough for a comfortable retirement in the future, which is one less thing to worry about.
 
‘While this may feel like a stretch to many people in the current environment, if the nation doesn't plan for their financial futures now there is the danger that they won't have enough to ensure a comfortable retirement,’ he added.