The State of Financial Wellbeing in the UK: Why We Need to Talk About Money

 Paul Mitchell | Financial and Retirement Planning Coach

Find him here at: Your Smart Retirement Coach

The Hidden Financial Crisis: Why UK Adults Need Support More Than Ever

In today’s uncertain economic climate, UK adults are facing unprecedented financial challenges. As a financial life coach with over three decades of experience, I’ve witnessed firsthand how these challenges affect people’s lives, relationships, and wellbeing. Let’s explore what the latest research tells us about financial wellbeing in the  UK, and more importantly, what we can do about it.

The Workplace Impact: More Than Just Numbers

Recent research from the Close Brothers Financial Wellbeing Index (2023) reveals a startling truth: 77% of UK employees say money worries impact them at work. This isn’t just affecting individual productivity; it’s costing UK businesses an estimated £15.2 billion annually in lost productivity (CIPD 2023).

Consider this: while you’re reading this article, millions of your colleagues across the UK are:

• • Checking their bank balances instead of focusing on work

• • Worried about mounting bills rather than participating in meetings

• • Feeling anxious about their financial future instead of being present in their jobs

The Confidence Crisis

The Financial Conduct Authority’s latest Financial Lives Survey (2023) paints a concerning picture:

• • 45% of UK adults don’t feel confident managing their money

• • 24 million UK adults lack financial resilience

• • 39% don’t feel confident making decisions about financial products and services

This lack of confidence isn’t just about knowledge – it’s about having the right support and guidance to make informed decisions.

The Retirement Reality Check

The Pensions and Lifetime Savings Association’s research reveals some worrying trends:

• • Only 23% of UK adults feel they understand enough about pensions

• • 51% of people aged 40-60 have never calculated their retirement income needs

• • 78% of UK adults aged 45-54 worry they won’t have enough for a comfortable retirement

Perhaps most tellingly, the average UK adult spends more time choosing a holiday (3.5 hours) than reviewing their pension (2.5 hours).

The Relationship Factor

Money isn’t just affecting our work lives – it’s straining our relationships:

• • 55% of UK couples regularly argue about money (Relate, 2023)

• • 48% of UK marriages that end cite financial stress as a major factor

• • Only 17% of couples regularly discuss their finances together

• • However, 70% of couples report that financial coaching improved their relationship

Mental Health: The Hidden Cost

The impact on mental health is particularly concerning:

• • 94% of UK employees are suffering from money worries (CIPD 2023)

• • 40% say money worries affect their sleep

• • 46% report that financial stress impacts their mental health

The Planning Gap

Perhaps most concerning is the lack of structured planning:

• • Only 28% of UK adults have a written financial plan

• • However, 73% of those who work with a financial coach report feeling more confident about their future

• • 82% of people who receive financial coaching report reduced financial anxiety

Breaking the Cycle: The Power of Coaching

These statistics might seem overwhelming, but they point to a clear solution. Financial coaching provides the support, guidance, and accountability needed to:

1. 1. Build financial confidence

1. 1. Create clear action plans

1. 1. Develop better money habits

1. 1. Improve relationships with money

1. 1. Reduce financial anxiety

Taking Action

The data is clear: waiting to address financial wellbeing only compounds the problems. But there’s hope – with the right support, you can:

• • Develop financial confidence

• • Create a clear path forward

• • Build better money habits

• • Improve your relationship with money

• • Prepare effectively for retirement

Your Next Step

Don’t become another statistic. Take the first step toward financial confidence today with a complimentary 15-minute discovery call. Together, we can explore how financial coaching can help you build the confident financial future you deserve.

Book Your Free Discovery Call Here

Sources:

• • Close Brothers Financial Wellbeing Index 2023

• • Financial Conduct Authority (FCA) Financial Lives Survey 2023

• • Pensions and Lifetime Savings Association Annual Report 2023

• • CIPD Financial Wellbeing Report 2023

• • Relate UK Relationship Report 2023

• • Money and Mental Health Policy Institute Statistics 2023

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About the Author

Paul Mitchell is a dedicated Financial and Retirement Coach (Qualified To Chartered Financial Planner status) with over 35 years of experience in financial services. Through Your Smart Retirement Coach, he helps clients build confidence in their financial future and create fulfilling retirement lifestyles. As a retirement transition coach, I’m committed to empowering investors with knowledge, perspective, and strategic support.

 Book Your Free Consultation Now

Let’s find out if you’re truly ready—and help you get there.

This blog post is for educational purposes only and does not constitute financial advice. For regulated financial advice, please consult an Independent Financial Adviser.

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