Households reveal most likely cash headaches in next 12 months

Nearly nine in 10 (85%) people are concerned about their finances in the coming 12 months, a survey has found.

Using savings to make ends meet, money lost from investments and having a reduced income, and a job loss top the list of money worries, according to Prudential.

Concerns further down the list include social care and health costs, not saving any money, getting into debt, having to support people financially, not being able to retire as planned and having to ask parents or other family members for financial support.

The research involved 1,000 families across the UK in which either those surveyed in November 2020 had seen a financial adviser, or had parents or grandparents who had.

A third (33%) had already sought financial advice due to the economic fallout from Covid-19, and a further fifth (20%) were planning to, Prudential said.

Vince Smith-Hughes, director of specialist business support at Prudential UK, said: “It’s been a challenging 12 months for UK adults up and down the country and this has stimulated the need for advice, be it because of pent-up cash levels, market volatility or job security.”

Here are people’s biggest concerns, according to Prudential, and the percentages of people who opted for them: 

1. Having to use my savings to make ends meet,  23%

2. My investments losing money, 20%

3. Having a reduced income, 18%

4. Being made redundant/losing my job, 17%

5. Social care/health costs, 14%

6. Not saving any money, 13%

=7. Getting into debt, 11%

=7. Having to financially support my children, 11%

9. Not being able to afford to retire as planned, 10%

10. Having to ask my parents/family for financial support, 9%