Of those aged 45-54, just 11% said they feel ‘very confident’ their family would be financially secure – the lowest of any age group.
Only 19% of those surveyed by The Exeter reported feeling ‘very confident’ in their family’s financial security, down from 22% last year.
Confidence low across all age groups
Last year, those aged 25-34 were the most assured age group, with three-quarters (75%) confident they could cope with a financial shock. Now, that figure has dropped to 67%.
Some 36% of those aged 45-54 are not confident their family would be secure.
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Furthermore, 53% of this demographic were worried that, in the event of their death, their loved ones would find it difficult to manage day-to-day bills, financial affairs, mortgage payments or funeral costs.
Financial confidence of men higher than women
The Exeter reported that men continue to show higher financial confidence than women. Almost two-thirds of men – 62% – believe their families would be financially secure in the event of a shock.
Of the women surveyed, however, only 49% thought they would be secure financially.
Women are also more likely than men to feel less financially secure than they did six months ago, at 39% compared to 34%.
The Exeter suggested that this may be due to the fact that women save less each month on average, putting away £252 to men’s £404.
Jack Southcott, head of protection proposition at The Exeter, commented: “It’s not uncommon for many people to overestimate how secure their family finances would be in the event of an unexpected event or income shock, but today’s data shows that financial resilience is weakening across the UK.
“Nearly a third of adults are now concerned about unexpected shocks, and for many, it would only take a single illness, injury or period out of work to turn that worry into reality.
“While the industry has made strong progress in improving customer outcomes under Consumer Duty, there remains a significant gap between those who would benefit from financial advice or protection and those who actually seek it. Closing that gap will be critical to improving financial resilience across the UK.”
