Home Money Only one in 20 is free of any financial worry… and half say their health suffers as a result.

Only one in 20 is free of any financial worry… and half say their health suffers as a result.

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Widespread worry: Up to 86% of people have some type of financial worry

Only 4 per cent of Britons say they are not worried about the state of their finances, and the vast majority do not feel completely comfortable regardless of their monetary position.

Meanwhile, 43 percent said they were actively worried about their financial situation, exclusive data from Schroders Personal Wealth reveals, and another 19 percent said they were “very worried” about their financial future.

The persistently difficult economic climate – combined with recent wage growth lagging inflation – is largely to blame for the public’s monetary worries, with 35 percent fearing they will not be able to pay for food or basic household bills. home monthly.

Even those with solid finances could feel the strain, warns Vanessa Hubbard, personal wealth advisor at Schroders Personal Wealth.

She said: “They may feel the pressure of managing wealth they’ve never had before or worry about possible future changes, such as the deal for cheap fixed-rate mortgages coming to an end or upcoming tax changes.”

While the number of people affected has remained virtually stable since 2023, the number of people worried about not being able to pay for basics has increased by 10 percent.

However, future finances also weigh on the mind, as 23 percent said their main worry was not saving enough for retirement, while 17 percent said they worry about not being able to contribute enough money to their savings.

Widespread worry: Up to 86% of people have some type of financial worry

Financial worries affect health

Of those worried about their finances, more than half said worry had affected their mental health, with anxiety and stress among the top problems resulting from financial difficulties.

Almost a third also said their physical health had been affected, with people finding it harder to sleep and experiencing headaches.

The burden appears to fall more heavily on men, with 54 percent mentally affected compared to 48 percent of women.

“One reason this may be so is that financial concerns often affect men and women differently due to societal expectations and roles,” Schroders Personal Wealth said.

“Men may feel a greater sense of responsibility to provide financially, which can lead to greater mental stress when they perceive their ability to do so is threatened.”

Despite this imbalance, data indicates that people are still more likely to turn to their partners for financial advice: 33 percent do so, compared to just 6 percent who choose to consult a financial advisor .

Hubbard said: ‘These findings emphasize the need for comprehensive financial planning and support services.

‘By addressing financial concerns and providing effective strategies for managing finances, we can help alleviate the mental and physical burdens that financial stress places on people.

“This, in turn, can lead to greater overall well-being and a better quality of life for those affected.”

People seek to act.

Given the concern shown about people’s finances, it is perhaps not surprising that 41 percent of people consider fixing their financial situation to be their top priority, and another 48 percent consider it somewhat of a priority.

Only 8 percent of people think their finances are not a priority.

The most common financial goals are to build an emergency fund (a priority for 39 per cent of people), while 35 per cent want to be debt-free and another 21 per cent aim to contribute more to their pensions.

Alice Harmer, personal wealth adviser at Schroders Personal Wealth, said: “It is crucial to have a financial safety net, such as an emergency fund, to help you manage unforeseen events such as if you are unable to work, become seriously ill or die.”

‘Consider having something to help you and your family cope financially.

‘My advice would be to always have a plan. Know your finances and what you need.

“It’s much easier to deal with financial uncertainty if you really understand what you really need to pay the bills and have a good quality of life.”

‘Achieving financial goals requires more than just good intentions; You need a well-thought-out plan and proper guidance.’

Professional advice is not cheap. It will probably cost between £500 and £5,000 depending on what you need to do, according to financial adviser directory Unbiased.

Our one-off financial advice and costs guide can help you understand more.

However, an initial meeting is likely to be free and a good adviser should clearly set out the costs you will have to pay if you continue to use their services.

Get answers to your financial planning question

Financial planning can help you grow your wealth and ensure your finances are as tax efficient as possible.

A key factor for many people is investing for retirement, tax planning and inheritance.

If you have any questions about financial planning or advice, our experts can help you answer them. Email: Financialplanning@thisismoney.co.uk.

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