Brits believe that they will be financially worse off in the next three years, but are not discussing their long term financial security and are unprepared for increases in living costs.
So says HSBC’s latest Power of Protection report: Facing the Future.
It concluded that 35% of UK consumers believe they will be financially worse off in the next three years according to research by HSBC.
HBSC interviewed 1,000 people in the UK about the level of financial security, and the importance of planning and preparation for a secure financial future. It found that more than one in four people in the UK already feel constrained by their finances, with two thirds expecting to become financially worse off in the next three years.
What’s more, many families do not have conversations about managing their money for unexpected events, with 44% of families who are just about managing day-to-day never having had a conversation about their long term financial security. In contrast, the overwhelming majority of people 81% who have had a conversation about their long-term financial security are managing well.
And, four out of five respondents do not have an insurance policy which would cover regular costs if a family member has a serious illness or accident which would prevent them from working. Just under half 47% said their dependants would not be able to manage financially if they were unable to work.
HSBC Head of UK Premier & Wealth Insights Michelle Andrews said: “Long-term financial planning allows people to be in the strongest possible position to support their families and achieve their own aspirations.
“We would encourage everyone to think about the future and regularly assess their financial situation. It’s important to understand both the positive and negative effects that expected and unexpected events can have, to ensure we can confidently plan for the future. Our staff are ready to speak with HSBC customers to help them understand the range of options available.”