Advice Investments Wealth management

Press Comment: Battling feeble financial resilience needs to take priority over Brexit

20 June 2018

If you’re covering the FCA’s latest analysis from its Financial Lives Survey please see the following comment from Jane Goodland, responsible business director at Quilter. Jane says financial well-being needs to go to the top of the government’s to-do list despite the current focus Brexit and that financial education will be crucial to ensure that issues faced by families in both rural and urban areas are tackled.

Findings from the report include:

  • 4.1 million adults are in ‘difficulty’ because they missed bill payments or credit commitments with 3.1 million adults facing high cost loan
  • Seven in ten (71%) UK adults have no investments
  • Nearly six in ten (57%) UK adults have no cash savings or savings of less than £5,000. The same is true for two thirds of adults in Northern Ireland (67%) and the North East (66%), but for only half (52%) of adults in the East of England and in the South East
  • People in rural areas are more likely to be satisfied with their overall financial circumstances, compared to those in urban areas
  • Those in urban areas are more likely to use high-cost loans and on average have higher levels of unsecured debt
  • 49% of people in urban areas show characteristics of financial vulnerability compared to 54% in rural areas
  • Among non-retirees aged 45 and over, 16% say they have not really thought about how they will manage financially when they retire, including 20% of non-retirees in the North East, Yorkshire and the Humber and core cities

Jane comments:

“These statistics should act as a very serious wakeup call and show how incredibly vulnerable the average UK family is in terms of their financial wellbeing.  Government needs to scrutinise figures from the FCA’s survey as a matter of urgency. Battling feeble financial resilience should be at the top of its to-do list, no matter the political backdrop and despite all eyes being on Brexit.

“Aesop’s fable of the town mouse and the country mouse revealed that tastes differ when it comes to lifestyle and location. The latest FCA research exposes that these taste and lifestyle differences lead to financial differences – including a divergence of financial challenges. 

“While people in rural areas are more satisfied with their circumstances, perhaps because they are under less pressure to keep up with the latest trend, they are also more likely to be vulnerable. With those in the city more astute, but less satisfied.

“Creating a policy to combat such a divergence and help the entire UK population may seem impossible, but there is a simple solution that can help – financial education.

“No matter what background or location, everyone benefits from better financial education. Politicians may believe that being competent with numbers equals being good with money. However, this  study points out that financial habits are motivated by more than that and can depend on our location, attitudes and behaviors. It is therefore crucial that the Government looks to add financial education as a compulsory element of the national primary school curriculum to help address the nationwide financial knowledge gap.

“In the coming weeks, Kickstart Money will hold a special financial education class in Parliament, a reminder that no matter where you come from or what you do, you can always do with a bit more education.”

*KickStart Money is the work of twenty of Britain's leading savings and investment firms, brought together by TISA. The aim is to fill the gap in financial education provision in UK primary schools, by piloting a scheme to at least 18,000 primary school children over the next 3 years. It will be evaluated by the Money Advice Service as part of the What Works initiative in spring 2018, with the ultimate target being government adoption of it as part of the National Curriculum.

For more information contact

Kathleen Gallagher
023 8072 6293
07990 004932

Alex Berry
023 8072 6260
07741 151931

Notes to Editors:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.