More than one in four Brits are pinning their hopes of improving their financial situation on winning the lottery. Only one in five are currently satisfied with their financial position suggesting that 80% of the population should be looking for help. When compared to the results of the 2008 survey, it seems fewer people are planning properly for their future priorities and goals.
In a disturbing reflection of attitudes towards planning and financial literacy in the
This is compared to just 1 in 20 who will seek professional help to improve their finances, according to a YouGov survey commissioned for Financial Planning Week 2009 taking place this week 7 - 13 September.
Astonishingly, more than five times the number of those considering professional help feel their best chance of improving their finances is by scooping the lottery, despite a minuscule 1 in 14 million chance of hitting the jackpot.
When it comes to improving their financial situation, the survey commissioned by the Institute of Financial Planning in association with NS&I (National Savings and Investments), found that 4 in 10 Brits recognised the need to save more (41%) and reduce debt (40%), while only 1 in 20 (5%) plan to get the advice of a professional.
Nick Cann, Chief Executive Officer of the
He said: "The results of our 2009 Survey reflect the fact that many continue to ‘bury their head in the sand' by ignoring financial problems in the hope that they go away. Only one in five are currently satisfied with their financial position - suggesting 80% of the population should be looking for help, but either decide to do nothing about it or rely on a lottery win which is unlikely in the extreme."
Financial Planning Week is a not-for-profit programme aimed directly at helping people identify their goals in life and work out how to plan their finances in the most effective way to achieve them. It is run by the Institute of Financial Planning (IFP) and its aim is simply to kick-start people into thinking about their finances. Tips to help them on this journey can be found at www.financialplanningweek.org.uk.
Mr Cann said: "There seems to be a myth that Financial Planning is just for the wealthy or that professional help is expensive, which is why the IFP runs the Financial Planning Week initiative each year. We are aiming to change perceptions of Financial Planning by providing tips, tools and guidance to help people at all stages of life via our website - showing how applying just a few simple steps can make a huge difference."
When compared to the results of a similar survey run in 2008, fewer people are planning properly. In 2008, 85% of respondents reported that they had identified their financial priorities and goals and were making appropriate plans to achieve them. In 2009 this number reduced to 68%.
Given the challenging conditions of the past year, it is likely that those who previously believed they had effective plans in place realised that they had not gone far enough. The 30 to 44 age groups fared particularly badly, with almost 90% not having a financial plan that they review regularly.
Saving is a crucial part of Financial Planning. Only 23% of people surveyed believe they are saving enough or more than enough for future financial needs. Worryingly, three-quarters are not saving enough (39%), saving nothing (22%), or unsure about whether they are saving the right amount for their circumstances (15%).
John Prout, Director at NS&I comments, "Money can be a complex subject, but both the IFP and NS&I recognise the growing need for all of us to plan our finances better and saving is an important past of this process. Making sure that you set some money aside on a regular basis is a very good financial habit to have. NS&I's latest Savings Survey showed that more than half (53%) of the population said they couldn't afford to save any extra money each month because their outgoings prevented them from doing so. Financial Planning Week is an excellent way to encourage people to examine their income and expenditures, each month, to ensure that they live within their means."
Date: 8th, September, 2009
Author: Charmaine L. Horan
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