Over half of Brits feel their finances are “younger” than they are, according to L&G research
- Almost a third of UK adults have experienced significant life changes over the last decade, but their finances have stayed the same.
- 58% say their finances feel “younger” than they are, showing a gap between life stage and money habits.
- 57% worry they’ve already missed opportunities to grow their wealth, highlighting the long-term impact of delayed financial decisions.
The end of the tax year presents a key moment for people to take stock of their money, from making the most of tax-efficient pensions to reviewing ISA contributions. But new research from L&G suggests many may be falling behind.
Nearly 18 million UK adults (32%) feel their lives have changed significantly over the past decade, yet say their finances have failed to keep pace. Additionally, 18% of people who have experienced a major life event in the last 12 months admitted they did not update key financial areas like their pensions, savings, or protection policies.
This lack of action is having a tangible impact, with over half (58%) of people saying their finances feel “younger” than they are, creating a clear gap between their life stage and their money habits. The research also shows that 57% of people worry they’ve already missed opportunities to grow their wealth, while only 21% feel their finances truly reflect their current stage of life.
To help people understand whether their finances are keeping up, L&G has introduced a new interactive ‘What’s my financial age?’ tool. It brings the concept of Financial Nostalgia to life by asking a series of questions about when users last reviewed their finances, assigning them a ‘financial age’ based on their habits.
To make it even easier to take action, L&G has created a simple five-point ‘Financial MOT’ checklist covering important areas everyone should review:
Your Five-Point Financial MOT:
1. Review your pension contributions:
Have you had a pay rise or changed jobs? Check if you can increase your contributions. Even a small increase can have a big impact over the long term.
2. Use your ISA allowance:
You can save or invest up to £20,000 tax-efficiently before the 5 April deadline. Don’t leave it to the last minute.
3. Check your savings:
Are you getting the best interest rate possible on your cash savings? Have your savings goals changed?
4. Size up your emergency fund:
A good rule of thumb is to have 3-6 months of essential outgoings saved. Does your current fund still cover your current costs?
5. Update your protection:
If you’ve moved home, had children or changed your circumstances, review your life insurance and other protection policies to ensure they still provide the right cover.
Paula Llewellyn, CEO, DC & Workplace Savings at L&G, said: “Whatever stage of life you’re in, the end of the tax year is a good moment to pause and check in on your money.
“Our research shows life rarely stands still, and your finances shouldn’t either. Over the past decade, many of us have seen big changes in our lives, but we’ve also seen rising living costs and global uncertainty. So even when incomes have gone up, it hasn’t always kept pace with everyday expenses, which can make saving or topping up your pension feel harder.
“That’s why quick, regular check-ins can really help. They give you a chance to see what’s changed and make tweaks so you’re not missing out on things like tax allowances or pension growth.
“These small steps can make a big difference, helping your money work for the life you’re living today and the one you’re looking forward to in the future, not the one from your past.”
To discover your ‘Financial Age’ and find more information, click here
