Savings a top priority for post-Brexit Brits

31st January 2017

New research from Standard Life has shown that significant events in 2016 have influenced the way more than 50% of UK adults managed their finances last year, with 16% putting off making important financial decisions. A further 11% of Brits said political change and growing uncertainty had made them more concerned about their finances.

However, the events of last year drove others to take action, with 9% becoming more proactive and taking greater control over their finances. A further 9% responded to the uncertainty by focusing on cutting costs where possible, while 12% said saving had become the priority as they worked to create a bigger buffer against any potential lean times ahead.

The top 2017 goal is to save more than in 2016

The research also revealed that the most common financial goal for 2017 is to save more than in 2016 (27%), with saving up for big-ticket items such as holiday also proving popular (21%). Around 18% plan to tighten their belts and cut costs in 2017, while reviewing utilities to get better deals (17%) is a priority for some. Other goals include paying off debts (16%), setting a budget and sticking to it (15%), paying off a credit card (15%), increasing retirement savings (10%), writing a will (10%) and spending less on clothes (9%).

When asked if the changes of 2016 had altered how likely they were to invest in stocks and shares, 6% of UK adults said they were more likely, 7% said they were less likely and 20% said it hadn’t changed anything. Over 55% said they don’t invest or plan to invest in stocks and shares and a further 11% said they hadn’t given it much thought.

The research also shows that 30% of UK adults still have no idea how much money is in their pension, and that the majority are out of touch with how stock markets performed in 2016. Just 21% recognised that stock markets mainly climbed over the course of the year and 24% wrongly believe that the markets mainly fell.

Jamie Jenkins, personal finance expert at Standard Life, said: “It seems inevitable that the major events of 2016 would have an effect on people’s approach to financial planning and our research shows that some people put off making important financial decisions, while others were driven to save more, which remains the most popular goal for 2017.

“Aiming to save more and build a solid buffer is always a good thing, and the start of the year is a good time to make a plan to see how much you can regularly tuck away. But it’s not just how much you save, it’s where you save that’s important too. So look for the best rates on savings accounts and ISAs, and look beyond traditional savings too, to the opportunities offered by investing.

“By the end of this year, almost every business in the UK will have to provide a workplace pension scheme. That means many more people working for the country’s smallest businesses will be automatically enrolled in their workplace pension, joining over seven million people who have already made a good start with their pension savings. Everyone should look to make the most of the opportunity that provides.”