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Research reveals mixed feelings on personal finance ahead of Budget

26% are feeling hopeful and optimistic while 70% admit to feeling worried or anxious about what the Government might announce.

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Skipton Building Society research has revealed the nation’s personal finance concerns ahead of the 30th October Budget, with just 26% feeling hopeful and optimistic.

70% felt worried or anxious about what the Government might announce, and of those, more women (77%) than men (62%) were concerned. 

Almost half (49%) speculated that the Budget could have a negative impact on their personal finances, compared with 17% who felt more optimistic for a positive impact.

More than a third (36%) were worried about a rise in the state pension age, with women (43%) more concerned about this than men (29%). 

Three in 10 (30%) said their biggest financial concern would be if the state pension became means tested, and 28% feared a removal of the triple lock on the state pension the most. 

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Helen McGinty, head of financial advice distribution at Skipton Building Society, said: “With costs rising and savings getting stretched, those with one eye on their retirement are concerned as Budget speculation around pensions and retirement continues to grow.

“The gender pension gap in the UK remains a significant issue, so it’s no surprise this research is highlighted the biggest financial worries for many are related to retirement planning and pensions.

“Particularly for the women out there who could be looking towards a pension shortfall which sees them working for much longer than hoped.

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“When Skipton investigated the Gender Pension Gap, we found the average man has a pot of £63,222 ready for their retirement.

“Staggeringly, that’s 46% more than women, who on average have £43,117 to see them through their life after work.

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“A pension gap might come as no surprise, as women take more time out of work, it is a logical consequence that their pensions build more slowly.

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“But when it comes to taking time away from work, our research found 69% of women don’t consider how this could impact their financial future.” 

More than half (53%) of women had not taken action to prepare in advance of the Budget, dropping to 32% of men.

Of those men looking at their personal finances ahead of the Budget, 15% increased the amount they are saving, 13% increased their pension contributions, 12% sought professional finance advice, and 17% opened high rate savings accounts. 

McGinty added: “While speculation ahead of the Budget, is just that – speculation – it is bringing to the fore steps we can all take to monitor and manage our finances.

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“The gender pension gap may be a result of systematic gender imbalance or down to the fact that many working mums are sacrificing their earnings to put their children first. 

“But as with many things in life, knowledge is power, and it really pays to know what your pension looks like and to seek professional financial advice to get the help and support you may need to plan for your future.

“It’s really important at any age to take the initiative, be in control, and plan ahead. Be aware of the decisions you are making and how they may impact your financial future – if you need to, increase contributions to combat those gaps in earnings.

“Even just extra five pounds a month, for example, could take you a long way.

“After a life spent working hard, contributing to the system and raising children, everyone deserves the right to a comfortable retirement.” 

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