Norwich Union research has found that 94% of 40–50 year olds say more needs to be done to educate people on financial matters.
Norwich Union research has found that 94% of 40–50 year olds say more needs to be done to educate people on financial matters.
The survey found that 57% of people worry about their money at least once a week. Almost three-quarters of people in their 40s worry that they will not have enough money to live on when they retire - but only half save into a pension.
And although more than three-quarters (79%) of people admit that they need to know more about money, 88% said that it was people’s own responsibility to do something about it.
The survey into the money matters of 40–50 year olds also reveals people’s top five money priorities:
- 36% - reducing debt
- 19% - saving for their retirement through a pension
- 14% - building up a rainy day fund
- 10% - saving to help a child with school/university fees
- 9% - saving for retirement outside of a pension.
Almost two-thirds surveyed (63%) felt that financial education matters are most important for those 16-18 years of age, and just over half (51%) thought that financial education matters are most important for those 12-15 years of age.
Even with the work already undertaken by the industry through the Raising Standards initiative, there is still a massive amount to do. Some 81% of people say they find some areas of finance complicated and almost half (49%) of people said that the complexity of financial products has put them off addressing their own needs.
Sally Shire, director of marketing at Norwich Union, said: "Almost without exception people think that more needs to be done to educate people on financial matters. It is also clear that money worries prey on the minds of millions of people, with more than half of people questioned saying they worry about their financial situation at least once a week. Yet many put off making decision about their finances. Clearly this is an area for action.
"While good progress on better clarity and understanding of financial products has already been achieved through the Raising Standards initiative more needs to be done by the industry, regulator and government in partnership. For example, the work the FSA has initiated on financial capability together with initiatives such as the Personal Finance Education Group (PFEG) should help people in the future to further understand their finances and alleviate some of the worries they may have."
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Notes to Editors:
The research was carried out in March 2004.
- Norwich Union is the UK's largest insurer. It is the UK's largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company's long-term savings business in the UK
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group
- Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.