Statistics from The Financial Conduct Authority 2017 Financial Lives survey revealed that 1 in 10 adults (13%) don't have any savings to speak of.
The aim of the report, which surveyed 13,000 people, is to identify how consumers across the UK respond to financial services. As a result, the report highlighted significant differences in financial experiences between urban and rural areas across the UK. Some of the key findings are as follows:
There appears to be a clear North/South divide when it comes to savings. 17% of adults in the North West and 16% in the North East have no reserved funds in comparison to 9% in the South East and 10% in the South West. The report outlines that the reasoning for the divide comes down to a combination of factors such as age, health, income and employment. The average annual household income is highest in London and lower in the North East and North West.
Those living in rural areas struggle to gain access to financial services. Rural areas contain higher levels of vulnerability amongst consumers. Fourty-eight per cent of adults living in rural areas that are 75 and over have long term health conditions. This results in greater difficulty in accessing bank branches but also means they are less likely to use internet banking. This could potentially be the reason why 51% of people in rural areas also rely on the state pension, compared to only 37% in urban areas.
Those in urban areas are less satisfied with their financial situation. Twenty-seven per cent of adults in rural areas claim to be highly satisfied with their financial circumstance, compared with 20% of adults in urban areas. Those living in London are particularly dissatisfied with their financial current situation. The report suggests that this may be down to the fact that greater proportions of adults in London and core cities do not own their own home. There is also a higher concentration of adults with high cost loans in urban areas (2.4m) compared to those in rural areas (0.6m).
Andrew Bailey, FCA Chief Executive stated that, “This survey shows just how different the experience of financial services is for consumers across the country. That’s important for us, as we shape financial services policy. But it is also important for firms as they decide how best to serve their customers.”
It's evident that we should all attempt to establish our savings at the earliest age possible in order to prevent potential financial struggles in retirement. There are a number of ways in which this can be done, from setting up an ISA
The prospect of managing your income, particularly if you’re in your 20s or 30s, can seem daunting. However, AFH has over 160 financial advisers nationwide who will be more than happy to outline the options available to you based on your circumstances. If you’re concerned with any aspect of your finances, whether it be savings, investments, pensions or mortgages, please give us a call or fill out an enquiry form and we can soon put you in touch with one of our expert advisers.
The full report by The Financial Conduct Authority can be found here.
This article is for generic information only and should not be constructed as advice. Please contact us before proceeding with any course of action.