A report from Aegon revealed that three-fifths of people in the UK are positive about their finances this year, up from the number of people who felt positive about their finances last year.
The company’s latest Financial Priorities research, which is a survey of 2,000 adults showed that 60% of the respondents are feeling positive overall about their finances this year, up from 52% who felt this way going into 2024. In contrast, about 35% of the respondents are feeling negative about their finances this year but this has still improved from 38% of the respondents who answered similarly last year.
Thirty-four (34) percent of the respondents answered ‘enjoying life’ as the most common financial priority for UK adults this year -- especially for those in the older cohort aged 60 and above, with 41% of the respondents in that cohort giving that answer. These results are up from last year’s findings of 28% of the respondents who also responded ‘enjoying life’ as their priority and from 33% of the respondents from the older cohort providing that answer.
‘Building up emergency savings’ and ‘paying for basic living expenses’ are two of the other common financial priorities that UK adults are preparing for in 2025, according to the survey.
Meanwhile, ‘pension saving’ is one of the top three financial priorities for 11% of the public, the report revealed. The company said that while this figure may seem low, it remained unchanged from last year, which could suggest that short-term bumps like high inflation have not affected the public’s attitudes towards long-term savings.
On the other hand, ‘unexpected expenses’ remain the top financial concern going into 2025, the same result from last year.
Steve Cameron, director of pensions at Aegon, acknowledged the results of the survey, adding that financial concerns of the UK public are becoming less of a dominant issue.
“As we enter 2025, it’s encouraging that positivity on personal finances has jumped,” he said.
However, Cameron also expressed concern about the findings that women across various ages and those aged 50 to 59 years are less likely to feel positive about their finances this year. According to the survey, about 54% of women and 47% of those aged 50 to 59 years are less likely to feel positive about their finances.
Cameron said that the government’s decision to means-test the winter fuel allowance may have affected the age cohort. The realisation that many have not managed to save enough for the retirement that they want may also have been a factor.
“Undoubtedly there will be challenges for the year ahead – both in terms of individual and family household budgets, business confidence and wider economic factors that impact us all – and so it will be interesting to track the results both across 2025 and to future years,” Cameron concluded.
What do you think about this article? Please share your comments below.
