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What’s your biggest financial fear?

What’s your biggest financial fear?

Category: Money

Updated: 10/03/2016
First Published: 10/03/2016

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Many of us have niggling money concerns from time to time, but there are some that turn into all-out nightmares, and these can be harder to keep in check. TopCashback has delved deeper into the financial fears of British consumers, and unsurprisingly, many are fearful of similar things…

The research found that the biggest fear by far is not having enough money to live on in retirement, cited by 41% of respondents. Given how much pensions have been in the news in recent years, it's little wonder that money issues associated with this time of life have come to the foreground; it's a worry that's been compounded by the fact that many people find it difficult to save for the future (90%), and a worrying number of respondents are scared of not having enough money to retire at all (83%).

However, this isn't the only financial concern, with a further 35% admitting that they're worried about falling into debt. Other concerns on the list of top financial fears include being unable to save (30%), not having enough money to cover monthly expenditures (29%), not being able to afford a comfortable lifestyle (29%) and missing mortgage/rent payments (16%), and much of this could be driven by confusion over their finances.

For example, the research found that 43% of respondents have struggled to make the right financial choices, and of those, 63% blamed it on not fully understanding their financial situation, while 61% said it was because they didn't realise the consequences of their bad spending and saving habits. More than half (53%) blame their poor money management on overspending and taking out personal loans they couldn't pay back, as well as living outside of their means (53%) and not realising the consequences of having minimal savings (35%).

"Finances can be a very tricky and daunting subject, particularly in areas such as pensions, investments and even day-to-day money management," said Natasha Rachel Smith, consumer affairs editor for TopCashback.co.uk. "Many people have a tendency to ignore financial matters because they find them too difficult to understand or because they don't fully appreciate their financial situation."

However, as Natasha points out, there are some simple measures that consumers can take to gain control of their finances, and ultimately feel more financially confident. First up, you'll need to thoroughly evaluate your financial situation, starting by checking your credit score (by using Experian CreditExpert, for example) and reviewing your monthly income and outgoings.

Once you've started to understand your financial status a bit more, you can take proactive steps to get in control, and proper money management is all about making sure that any money spent on essentials goes as far as possible. Things like comparing insurance policies and broadband packages are quick and simple ways to cut costs and make your money go further, and cashback sites and voucher codes could help even more. You may even find you're able to save a bit more each month, which could help keep your financial fears in check.

What next?

Compare insurance, broadband and energy deals to see if you can cut costs

Check out our voucher section to get instant savings

Managed to save a few pounds? Put them to good use in a savings account

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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