What is Financial Resilience?

Our latest consumer research shows that people across the UK are worried and are losing sleep worrying about their finances and most people are not prepared for an increase in costs.

| 5 min read

Financial resilience measures our ability to withstand money pressures, such as divorce, illness, and more recently, rising inflation. It’s a long-term, pragmatic view designed to keep your savings secure - no matter how unpredictable life is.

New research has revealed more of us are looking for ways to budget and plan for rising prices. While the cost-of-living crisis is an understandable concern, setting up some saving goals can help you feel more confident with your money situation – and become financially resilient.

Worryingly, 17% have already or plan to, stop contributing to a workplace pension in the next year.

Many people (30%) are cutting back on the extras such as everyday perks (e.g. eating lunch out, coffee, general treats) but a surprising 26% refuse to give these up. Clearly, our holidays are very important to us, as fewer people have already given these up (25%) and 39% will not give these up.

Worryingly, 17% have already or plan to, stop contributing to a workplace pension in the next year.

The better news is that 71% of UK adults have an emergency fund, which would last an average of four months and three weeks. More than half of consumers (53%) are concerned about not being able to save for their emergency fund given the current economic environment, and the same number (54%) are worried they’ll use up these savings as the cost of living rises. This is much more the case for women than men (61% vs 46%) and is even more significant for those aged 35-44 (66%). You can view the full report here.

Research details: 2,086 nationally representative adults. Fieldwork: 09.06.22 - 13.06.22. Conducted by Censuswide.

How to build financial resilience

There is a lot of general information available, but it is hard to move from Google to planning. We live in a world where there is a wealth of information and data and, while this is in many ways positive, it can also be overwhelming and potentially hazardous. More people are becoming engaged with their finances and learning how to make their money work harder or smarter, yet with so many online platforms, bloggers, and social media channels to navigate, it can be difficult to know which way to turn. There are also financial scammers to beware of.

To help people build financial resilience and to make the right decisions, we are introducing the OneStep Financial Health Check. It is designed to help you understand your current finances and the steps to take to secure your financial future. We cover the five key areas of personal finance that form the foundation of a strong financial position:

  1. Managing your debts
  2. Security for day-to-day expenses
  3. Preparing for the unexpected
  4. Financing your home
  5. Saving for the future

Why is financial planning important?

We all have different circumstances, plans and dreams, but the foundations needed to build a secure financial future are essentially the same for all of us. Some planning – particularly early on – can go a long way to help you not only achieve your life goals in terms of finances and experiences but also give you the confidence to be ready for the unexpected.

A good Financial Planner will aim to connect with you in a deeply human way. It’s about helping people and their loved ones to make great decisions about their finances – while also understanding what is most important to them, in line with their personal values. The role of the financial professional is to provide insight into how each client can live their best life, based on the assets and the income that they have.

The benefits of a financial plan

If you’re considering getting a financial plan with one of our money experts, this is what you can expect during the process:

  • For a fixed one-off fee, we will take you through our defined process and gain access to online tools, interactive guides, and time with one of our financial professionals to review your own personal circumstances.
  • You’ll have a series of online meetings with a qualified financial professional, to discuss your goals, challenges, and potential options.
  • At the end of the process, you will leave with a personalised plan, covering each of the five areas, looking at what is in place and what needs to be done, giving you a clear action plan.
  • Should you have any further questions or want to explore options with our wider products and services, your dedicated planner will be available to provide you with the support you need.

This is one of a series of OneStep plans, focusing on a particular area of your finances. The others are:

Find out more

Gain access to timely stats and findings from the full research report: The New Economic Paradigm: Inflation, Cost of Living and Advice

Research details: 2,086 nationally representative adults. Fieldwork: 09.06.22 - 13.06.22. Conducted by Censuswide.

Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.

What is Financial Resilience?

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