- 32% (18 million) of UK adults have experienced significant life changes over the last decade but their finances have stayed the same
- 15% (8.1 million) have seen their income improve in the last 10 years but are still saving the same amount
- One in three (33%) people say they intend to do nothing to update their finances at the end of the financial year
With the end of tax year fast approaching, millions of people risk missing out on allowances, tax relief and opportunities to grow their money because their finances no longer reflect the life they're living today.
New research1 from L&G reveals that while life has moved on for almost 18 million2 people over the past decade, many have failed to update their pensions, savings and protection accordingly.
The study shows that 32% of respondents have experienced significant life changes over the last 10 years, from pay rises and promotions to starting families and buying homes, yet their financial habits have remained largely unchanged.
As a result, many Brits are managing their money as if it were still 2016.
The research shows that despite rising incomes, a third say they are saving no more than they did 10 years ago, with a further 28% admitting they're saving even less. While there are external factors like cost-of-living pressures impacting financial behaviours, ongoing 'pro-cash-tination' can mean missing out on tax relief, higher returns, and long term security.
This financial inertia is compounded by a lack of regular check-ins, with over a quarter (28%) of respondents having not reviewed their savings rate in the past three years.
The same pattern is playing out in long-term planning. Almost two in five (39%) have not increased their pension contributions in line with pay rises, with many still relying on default contribution levels (32%).
Further to this, with the end of tax year fast approaching - a timely opportunity to refresh finances - one in three (33%) people admit they don't plan to make any changes, further underscoring the financial inertia at play.
This disconnect is starting to have consequences. Over half (57%) worry they've missed opportunities to grow their wealth, while financial security is also under strain. More than a third (34%) say their emergency savings wouldn't cover three months of expenses. Pro-cash-tination is also causing a mismatch between how old people are and how "old" their finances feel with more than half of Brits (58%) saying their financial age is younger than their real age.