Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Two Fifths of Britons Lack Basic Financial Literacy, Survey Reveals

by July 1, 2024
July 1, 2024
Two Fifths of Britons Lack Basic Financial Literacy, Survey Reveals

A staggering 23 million people in Britain have been found to possess low levels of financial literacy, according to a recent survey conducted by Opinium for the investment group Abrdn.

This finding underscores the widespread difficulty many Britons face in making basic financial decisions regarding savings and investments.

The survey, which included 3,000 adults, revealed a troubling level of ignorance or confusion about fundamental financial concepts. For the first time, participants in Britain were asked three key questions developed by the Global Financial Literacy Excellence Center in the United States, which are internationally recognised benchmarks for measuring financial literacy.

Only 20% of respondents could answer all three questions correctly, while another 20% got none right, and 24% answered only one correctly. In comparison, nearly 30% of Americans answered all three questions correctly in a similar 2021 study.

These questions assessed basic understanding of interest rates, the impact of inflation on savings, and the merits of investment diversification. The results indicate that approximately two fifths of UK adults, or 23 million people, have poor financial literacy.

“This is concerning, especially in a world where people are going to have to take more responsibility for their finances,” stated Sarah Moody, corporate affairs chief at Abrdn.

The lack of comprehensive data on how Britain compares with other countries for financial literacy is notable, as the UK has ceased participating in figures compiled by the Organisation for Economic Co-operation and Development. However, a Financial Conduct Authority (FCA) study found Britain ranked ninth out of 17 countries, just above Turkey and below Indonesia. The FCA’s financial lives study also revealed that 24% of UK adults lack confidence in managing their money, with the young, unemployed, and ethnic communities being the most affected.

Basic arithmetic skills and financial knowledge are crucial for helping people budget correctly, save for emergencies and retirement, and avoid unmanageable debt. The FCA considers better public understanding of finance as essential for protecting consumers from predatory lenders, investment scams, and other financial dangers.

“We’ve been asking for financial education to be baked into the system from primary school age,” Moody emphasised. However, early education in financial literacy remains inconsistent, with only 47% of children receiving meaningful financial education at home or school, according to the Money and Pensions Service.

Labour’s shadow education secretary, Bridget Phillipson, has pledged to reform the maths curriculum to help students apply lessons to everyday life, including budgeting, purchasing holiday money, and following recipes, should Labour win the upcoming general election. Phillipson has highlighted Britain’s “chronic cultural problem with maths.”

The Abrdn study further found that only 33% of people with poor financial literacy had workplace or private pensions, compared to 51% of those with good financial literacy. Additionally, 39% of individuals with high financial literacy held investments, compared to just 21% of those with low financial literacy. Only 20% of people reported having a good understanding of savings products, while a mere 12% claimed a good understanding of investments.

These findings spotlight the critical need for enhanced financial education across the UK, starting from a young age, to equip individuals with the knowledge necessary to manage their finances effectively.

Read more:
Two Fifths of Britons Lack Basic Financial Literacy, Survey Reveals

0
FacebookTwitterGoogle +Pinterest
previous post
UK economy ‘will grow faster than forecast’, Says KPMG
next post
Vast Dorset salt caverns to store hydrogen under former Royal Navy base

You may also like

Carbon capture schemes to share £20bn in funding

March 31, 2023

Getting To Know You: Philip Atkinson, Managing Director,...

January 24, 2023

Will a business that doesn’t know its market,...

December 4, 2023

British holidaymakers to face €7 EU visa waiver...

August 21, 2024

Zeru Is the Best Place to Buy YouTube...

November 10, 2022

Mark Carney considers bid to replace Justin Trudeau...

January 7, 2025

1nhaler raises £2 million to develop single-use sustainable...

November 27, 2023

New research shows optimism on the high street...

November 15, 2023

Removal of presenteeism and focus on wellbeing should...

August 16, 2022

New Forrester Study Highlights Efficiency and Enhanced Employee...

December 6, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved