Article date: 3 November 2004
Norwich Union research has found that 94% of 40–50 yearolds say more needs to be done to educate people on financialmatters.
The survey found that 57% of people worry about their money atleast once a week. Almost three-quarters of people in their 40sworry that they will not have enough money to live on when theyretire - but only half save into a pension.
And although more than three-quarters (79%) of people admit thatthey need to know more about money, 88% said that it waspeople’s own responsibility to do something about it.
The survey into the money matters of 40–50 year olds alsoreveals 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 educationmatters are most important for those 16-18 years of age, and justover half (51%) thought that financial education matters are mostimportant for those 12-15 years of age.
Even with the work already undertaken by the industry throughthe Raising Standards initiative, there is still a massive amountto do. Some 81% of people say they find some areas of financecomplicated and almost half (49%) of people said that thecomplexity of financial products has put them off addressing theirown needs.
Sally Shire, director of marketing at Norwich Union, said:"Almost without exception people think that more needs to be doneto educate people on financial matters. It is also clear that moneyworries prey on the minds of millions of people, with more thanhalf of people questioned saying they worry about their financialsituation at least once a week. Yet many put off making decisionabout their finances. Clearly this is an area for action.
"While good progress on better clarity and understanding offinancial products has already been achieved through the RaisingStandards initiative more needs to be done by the industry,regulator and government in partnership. For example, the work theFSA has initiated on financial capability together with initiativessuch as the Personal Finance Education Group (PFEG) should helppeople in the future to further understand their finances andalleviate 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'slargest provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 75% of thecompany's long-term savings business in the UK
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group
- Norwich Union’s news releases and a selection of imagesare available from Aviva's internet press centre at www.aviva.com/media.