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.
The company polled more than 2,100 UK adults in November and December, finding that almost half (48%) are worried about their current financial situation, while a third try to avoid thinking 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.”
Those aged between 35 and 54 have experienced the greatest negative shift in their financial attitudes.
When 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 to 34) when it comes to long-term saving and investing, while Generation Z (aged 18 to 24) now feel more confident about investing.
Younger investors (aged 18 to 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.
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.”
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