Latest News and Events

Understanding Financial Lives

The Financial Conduct Authority (FCA) which regulates the UK’s financial services has recently concluded a survey which aimed to build an understanding of the financial lives of UK adults. As the FCA says on its website “From children’s ISAs to pensions, direct debits to credit cards, loans to investments – how well financial markets work has a fundamental impact on us all.”

The survey involved some 12,000 people taking part in online interviews with a further 900 people being interviewed face to face. The full results are broken down by age and sector and make interesting reading but even the executive summary highlights some challenges for the financial sector. For example, the survey found that 12 million people have insurance or protection products and would go for the cheapest rather than comparing the coverage of different products. Similarly, 400,000 UK adults have accessed a defined contribution pension plan in the last twelve months despite admitting “to not understanding their access options at all or even that options exist.”

Whilst financial understanding seemed to improve with age the report is a valuable reminder about the importance of taking time to understand financial products and to ensure that they best meet individual needs. What is right for one person may not be the optimum solution for another and simply picking the cheapest or most accessible option may prove costly in the long run.

If you are looking for pensions or investment advice, or if your situation has changed and you may therefore need to review your existing investments, contact Beckworth by using one of the links on our website.