Britons feel unprepared for financial shocks, study finds

Almost half of Britons feel financially unprepared for major life events, despite recognising the importance of long-term financial planning, according to new research.

YouGov research for wealth management and employee benefits firm Mattioli Woods found that 44% of Brits do not feel prepared for the major financial shocks that could arise before retirement for any of the major life situations presented to them, such as needing long-term care, losing the ability to manage their finances, supporting ageing relatives or relationship breakdown.

The figure rises to 53% among 45–54-year-olds, compared with 32% of those aged 55 and over, pointing to a particular challenge for those approaching later life. Women are also less likely than men to feel financially prepared, at 48% compared with 40%.

Scotland and the North West recorded the highest levels of financial unpreparedness at 49%, followed by Yorkshire at 48%.

Despite these concerns, the findings suggest that Britons recognise the value of planning ahead. On average, respondents believe people should start making serious plans for their long-term financial future at the age of 28.5.

Mattioli Woods said the research highlights a disconnect between the importance Britons place on long-term financial planning and their confidence in being prepared for the unexpected, suggesting there is an opportunity to broaden the conversation beyond simply how much money people will need in later life.

Amit Joshi, managing director of wealth at Mattioli Woods, said: “Many people understandably think about financial planning in terms of retirement and making sure they have enough money for later life. But our research shows that the financial events people feel least prepared for can often happen much earlier.”

He added that long-term financial plans should consider potential care needs, family responsibilities and what would happen if someone could no longer manage their own affairs.

“The fact that people believe serious financial planning should begin before the age of 30 shows there is widespread recognition that planning ahead matters. No one can plan for every eventuality, but starting these conversations earlier can give people more time, greater flexibility and more options when circumstances change,” Joshi said.

The YouGov research surveyed 2,078 UK adults in early September.

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