Major life moments prompt four in ten to review finances

New research from Aviva shows that major life events encourage people to think more about their finances, but only one in six (17%) choose to invest any extra income, with most opting to save or spend it instead.

From starting a family to receiving a pay rise or even approaching retirement, life's milestones often make people think more carefully about their finances.

Nearly four in ten (39%) people say they are more likely to review their finances or investments when they receive a pay rise or during bonus season, making it the number one trigger. Over a third are prompted to check when interest rates change (35%), at tax year end (34%), the start of a New Year (33%) or when schools go back after summer (27%), compared to the rest of the year.

Although many people take the time to review their finances at significant points in their lives, few go on to actually invest any additional money. Only one in six (17%) say they would invest extra income they receive through a pay rise or bonus but 38% say they would save the money and 28% would spend it.

Those who do go on to invest say that retirement is the most common reason they start (19%). Growing long-term wealth (14%), starting to earn a regular income (11%), joining a pension scheme through work (11%) or becoming more financially confident (10%) also rank among the biggest triggers.

Family and relationship milestones also play a part, with 7% saying they started investing after having children or starting a family, while buying their first home, getting married or entering a long-term relationship encouraged 5% of people to invest.

Beyond major life events, the research found people are particularly likely to review their finances during certain points or seasons of the year.

More than a third (37%) reduce or pause investing during high-spending periods like Christmas or summer holidays. However, almost half (47%) say that immediate priorities like holidays, big purchases or just everyday costs outweigh investing for them.

Alistair McQueen, Head of Savings & Retirement at Aviva, said: "Most of us don't choose to review our finances out of the blue. It tends to happen when something changes in our lives.

"That could be a pay rise, a new home, the birth of a child, or simply reaching a stage where we start thinking more seriously about the future or retirement. These moments usually push us to reflect on our finances.

"The good news is that many people are already reviewing their money regularly. The challenge is making investing a bigger priority and giving your money the opportunity to grow over the long term and work harder towards achieving your goals.

"Even small amounts invested regularly can make a significant difference over time."

While cash savings remain important to cover unexpected costs, investments can have greater potential to grow over time, helping people keep pace with inflation.

Life is full of prompts to think about our money, whether it's a pay rise, a new house, a growing family or kids going to school or university. Aviva is encouraging people to use these moments as an opportunity not just to review their finances, but to take a practical step towards achieving longer-term goals through investing.  Small investment decisions repeated consistently over time can add up.

-ends-

Media Enquiries