Most people in the UK are not financially prepared for the current economic climate, according to a new study by Charles Stanley.
In a study of 2,086 UK adults, the wealth manager found that most participants had not secured their savings and were financially at risk as a result.
For example, fewer than one in four people had life insurance in place, while some of those with the foresight to do so have cancelled their coverage to cope with the rising cost-of-living.
The study found that 10% of adults have already given up insurance policies as a result of spiralling costs and a further 18% intend to reduce theirs.
Lisa Caplan, director at Charles Stanley, said: “The findings of our recent study make for difficult reading. People just aren’t equipped to manage the difficult months ahead.
“Many are resorting to radical changes to household finances in order to steady the ship -actions which could have long term ramifications for their financial health and wellbeing. We urgently need to take steps to boost financial resilience now.”
Likewise, few people in the UK have built up a safety net to fall back on in difficult times – 21% of men have a nest egg, compared to just 12% of women.
As the economic outlook appears increasingly volatile, 11% of UK investors have stopped investing all together and another 17% are considering doing so too.
The new research also revealed that less than half (40%) of those surveyed have a workplace pension, which could suggest a lack of understanding around how they work.
Outside of work, just 21% of people have a personal pension and the gender divide is significant here too – 25% of men had a personal pension, while 18% of women did.