As financial worries continue to plague households across the UK, new research from Moneyhub sheds light on the profound impact on both short-term aspirations and long-term financial planning.

Its research, which amalgamates insights from diverse age groups, highlights common themes and disparities in financial experiences and expectations.

Financial struggles

Over half (52 per cent) of Britons regularly worry about their financial situation, indicating widespread financial anxiety within society.

Almost half (48 per cent) of individuals aged 18 to 34 admit to delaying life goals such as having children due to affordability concerns. But the middle-aged are the most likely generation to feel the pressure on their purse strings, with 63 per cent of 45-54 year-olds indicating they are worried about their finances.

Although the research nods to the difficulties presented by macro-economic pressures, it also shows that banks and financial institutions could do more to help. Over a third (34 per cent) of respondents said that banks and financial institutions don’t make it easy to understand finances, and 31% said that they would save more if they understood their finances better.

Kim Jenkins, managing director of Moneyhub API, comments: “Our research makes it clear that there is an opportunity to help customers understand and manage their finances. By using the available technology, banks and financial institutions would be able to help their customers properly understand their financial situation and provide smart nudges that would help them make better financial decisions.

Through open banking capability and easy-to-build solutions such as Moneyhub’s Smart Saver API Recipe, banks can provide a helping hand for their customers to budget and know precisely when they have excess to save. This will also enable them to deliver better customer outcomes.”

Retirement at risk

A lack of information is also putting people off from potentially saving for a better future.

Over two fifths (42 per cent) of consumers stated that they do not find it easy to interact with their pension or investment provider, with one in four (25 per cent) citing that the biggest reason for communication being difficult is their provider not having an app. The lack of an app was also rated as more important than the ability to ‘speak with someone.

This difficulty in communicating with providers could be leading to poor customer outcomes. The findings from Moneyhub show over a third (36 per cent) of consumers aged 35 to 44 years said too little information is putting them off adding to their pension. And over one in eight (13 per cent) of consumers don’t even know who their provider is.

Mark Horwood-James, managing director at Moneyhub personal finance technology, said: “Consumers are saying loud and clear that pension and investment providers can be doing more to help them make better financial decisions. It is also striking how in demand technology is from customers. Apps and specifically the use of open banking and open finance technology can contribute to better financial wellness and encourage positive outcomes. The ability for consumers to see a holistic picture of their finances enables them to make decisions that can improve their long-term financial health. Pension and investment providers could have a huge impact in this area, creating brighter futures for their customers and their businesses.

“The UK Government’s new Smart Data sharing laws (DPDI) and Pensions Dashboard announcement – alongside the continued emergence of open finance is accelerating the race to deliver customer-centric solutions. And the next few years will rapidly reveal who leads, and who gets left behind.”