63% have no financial provision for the future

Almost two-thirds (63%) of respondents have made no financial provision for the future, according to research by Equiniti Employee Services.

Phil Ainsley

Its survey of 1,189 UK employees found that less than a third (32%) of respondents save regularly.

The research also found:

  • More than a quarter (27%) try to save but monthly financial commitments make this difficult.
  • 81% of respondents face everyday financial challenges.
  • 29% of respondents worry about paying off their mortgage, while 14% are concerned that they will not be able to get onto the housing ladder.
  • Around a fifth (19%) worry that they will not be able to retire. Other concerns include clearing debts (29%) and being able to afford treats and life’s luxuries (24%).
  • After improving work-life balance (42%), saving for the future is cited as a key lifestyle consideration (37%). This is followed by a higher salary (24%) and having a pension (23%).
  • Two-thirds (66%) say that joining an employee share scheme would cause them to take a greater interest in their financial personal planning.
  • 41% of 18-24 year old respondents and 36% of 24-35 year old respondents said an employee share scheme would make them save regularly for the future.

Phil Ainsley (pictured), managing director of employee services at Equiniti, said: “The economic downturn contributed to a long-term savings gap, which threatens to become a financial time bomb.

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“Our experience shows that on a day-to-day basis people find it difficult to save, however, when saving is structured, for instance as part of an employee share scheme, it is much easier.

“We also see much greater engagement among younger employees where such plans exist. This suggests that the government could incentivise the introduction of share schemes, encouraging employers to make it a more attractive option to foster a savings culture that supports existing pension policy”.