More than half of people do not have a financial plan in place – survey

People aged under 34 are more than twice as likely to have a financial plan in place than those over 55, according to research for St James’s Place.

Less than half of people have a financial plan in place, according to a survey for St James’s Place (Tim Goode/PA) (PA Archive)

More than half (59%) of people have no financial plan in place, a survey has indicated.

People were asked if they have a financial plan for the future, for example an active plan to boost their savings or pension, or to buy a home.

Around two-fifths (41%) of people said they have a financial plan, with those aged under 34 more than twice as likely to have one (61%) than those over 55 (27%), according to the research commissioned by wealth manager St James’s Place.

Nearly two-thirds (65%) of those with a financial plan said they have seen their wealth increase overall in the past decade, compared with 38% of those without a plan.

The majority (67%) of those with a financial plan in place said they had taken financial advice.

The research also found 25% of people had not reviewed their outgoings in the past six months while three in 10 (31%) had not recently checked if they could get a better rate on their savings.

The same proportion (31%) had not checked whether they could get a better deal on their household bills, such as their broadband, gas or electricity.

When many factors are out of our control, it’s even more important to take control of the things we can have an impact on

Alexandra Loydon, St James's Place

More than half (57%) who checked for better savings rates saw a positive impact, as did 50% of those who looked if they could make savings on household bills.

Nearly half (47%) of those who had reviewed their outgoings reported a positive impact.

Alexandra Loydon, director of engagement and consultancy at St James’s Place, said: “Unfortunately, conditions are expected to remain challenging in 2024 which is worrying given the effect that the last year has already had on people’s finances.

“When many factors are out of our control, it’s even more important to take control of the things we can have an impact on.”

Survey research was carried out by Opinium among 6,000 people across the UK in October.