Majority of people in the UK unhappy with their finances in 2010

Debt and pensions were the biggest financial regrets in 2010 in the UK with a large proportion of the population regretting that they did not take a longer term view of their finances, according to a new survey.

Some 53% of UK adults stated that their greatest regret in 2010 was not paying off debts more quickly while over a third, 37%, identified not saving for retirement earlier as their biggest financial woe. Also 18% regret spending too much in the run up to Christmas and 14% regret spending too much on a partner, the survey from First Direct also shows.

While property is still seen as a valuable investment as 14% regret staying in a rented property too long, one in ten people regretted buying a house. Importantly with the impending rises in tuition fees, 7% regret taking out a student loan. However, when it comes to love, it seems that money is no object as just 4% regret spending money on an expensive wedding.

When asked what areas of their finances they are most and least happy with, 82% said they were most unhappy with the level of debt they had on credit cards and loans, eight out of ten said they were not happy with their pension provision and three quarters, 76%, say they are not happy with their savings pot.

In fact, the survey showed that Britons are unhappy with most aspects of their financial situation, as 74% reported that they were unhappy with their general saving and 60% were unhappy with their general spending.

It also shows that 79% were unhappy at not taking advantage of tax free investments, some 76% wished they had a savings pot, 74% were unhappy with their general saving habits and 60% regretted their general spending habits.

‘Ensuring that you plan ahead with your finances is extremely important, and starting to save for retirement as early as possible allows a better standard of living later on. The earlier you can begin to save for retirement, the more your money will work for you and acquire interest. Likewise, paying off debts quickly where possible prevents interest charges from rising and rising,’ said Richard Brown, senior savings product manager at First Direct.

‘The New Year is the ideal time to reflect on your financial habits and change these for the better. The earlier people start to plan their finances and look to the future, the easier they will find their long term financial position,’ he added.

The research also reveals a sharp division in financial happiness between the generations. Some 57% of over 60s are happy with their general spending compared with 32% of 16 to 29 year olds. Just over half, 51%, of over 60s stated that the recent economic turmoil has not affected their attitude to spending and saving compared with a third of 16 to 29 year olds, as tough mortgage restrictions on first time buyers and high youth unemployment appear to have taken their toll.