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Financial confidence has increased among the UK’s working population, according to research by investment, protection and retirement specialist LV=.

Its third annual Reaching resilience report, which surveyed 2,720 UK workers and examined financial attitudes across diverse groups, also found a notable shift in financial confidence among respondents. More than two-thirds (69%) of respondents said they feel financially resilient, up from 65% in 2023. Additionally, around half reported that they felt the right protection would further enhance their sense of resilience.

Almost a fifth (18%) said that they now consider themselves to be very financially resilient, which is a 4% increase over the past 12 months.

The report also revealed positive trends among parents of young children with more than three-quarters (77%) of this group saying they feel financially secure, up from 63% in 2022, and 79% reporting feeling more financially resilient than they did a year ago.

However, despite this rise in confidence, the research also highlighted gaps in financial protection, with almostt half (48%) saying they lacked any form of protection cover.

Half stated they would feel more resilient with insurance that covers monthly outgoings during illness and injury, while a similar proportion believe a lump-sum payout for serious illness or death would boost their financial confidence.

Mike Farrell, protection sales and marketing director at LV=, said: “This is a significant moment, and with increasing optimism, people are rethinking their financial priorities. These positive findings indicate a shift in outlook as people continue to successfully navigate external pressures, such as the cost-of-living crisis and ever-evolving economic conditions.

“Our research has revealed this is an ideal time for advisers to have meaningful conversations with their clients about the importance of protection. While it’s encouraging to see financial confidence on the rise, our findings show that the right protection could further strengthen this sense of security.”