Ghosts, goblins, and things that go bump in the night: it’s nearly Halloween, and fear of the supernatural isn’t the only thing keeping Brits awake. According to debt management company Lowell, Brits are also spooked about their financial future.
Lowell’s research shows that a third of Brits (33%) are struggling with fears about their financial future. From being able to retire to making ends meet every month, money is causing many Brits to stress and lose sleep.
Here are some of the country’s biggest financial fears and what you can do about yours.
Not being able to make ends meet
It’s no surprise that 19% of Brits are worried about covering their monthly outgoings. A 2020 study conducted by the CV LIbrary’s Insights team showed that almost 60% of Brits have trouble keeping up with their monthly payments. And over 56% run out of money before their next payday.
What you can do: If you’re struggling to keep up with your bills, start by making a list of your expenses. Where possible, contact providers to ask for a payment plan or even a break in your monthly payments. Reorganise your finances and eliminate unnecessary expenses. You likely don’t need three streaming services and that gym membership you never use.
Not having enough money to retire
Brits are scared about their financial future almost as much as their present. According to Lowell, 17% worry about not having a big enough pension pot to retire.
What you can do: Start by sitting down with a calculator to figure out how much money you need to retire. If you want to retire at 55, Unbiased estimates you need a pension pot of at least £650,000. But this number will vary depending on what type of lifestyle you want to pursue after retirement.
If your pension pot looks a little on the thin side, there are things you can do. Start by boosting pension contributions and seeing if your company will match your contributions. If you’ve worked for several companies, try merging all your pension pots into one scheme for better investment choices.
Not having any savings
Not surprisingly, 17% of Brits are also scared of not having money set aside. Lack of financial security can feel overwhelming, especially after coming out of a pandemic and massive lockdowns.
What you can do: If you don’t have an emergency fund, start there. First, decide how much you want to save. Experts recommend having three months’ worth of living expenses saved up. But if that number feels overwhelming, you can always set smaller goals. Start with £500 or £1,000.
Once you pick a number, go over your expenses and create a budget. See how much you can afford to save a month and how long it will take to reach your savings goal.
Other financial fears to watch out for this Halloween
Lowell’s research also found that 18% of Brits fear they might be the victim of payment card fraud and another 15% are feeling overwhelmed about their debts.
What can you do: To protect yourself against fraud, look after your cards and keep your personal information private at all times. Always use strong passwords, and change your passwords and PINs regularly. Get into a habit of keeping receipts and checking them against your statements regularly. If you spot anything unusual, contact your credit card company.
To tackle debt problems, contact an organisation such as StepChange or Citizens Advice. They can help you understand your debt situation and offer practical advice to deal with it.
