Financial well-being is growing in working population, report reveals

Confidence in financial wellbeing is growing amongst the UK’s working population with over two thirds (69%) of workers saying they feel financially resilient, up from 65% in 2023, according to new data from LV=.

Key findings from LV’s third ‘Reaching Resilience’ report revealed a notable shift in financial confidence for UK workers.

Additionally, around half of respondents reported that the right protection would further enhance their sense of resilience.

Almost one in five (18%) workers now consider themselves to be very financially resilient, a 4% increase in the past 12 months.

The report, which examined financial attitudes across diverse groups, also showed encouraging trends among parents of young children.

77% of this group reportedly felt secure, up from 63% in 2022, and just under four in five (79%) reported that they feel more resilient than a year ago.

These findings indicated a shift in outlook as people continue to successfully navigate external pressures, such as the cost of living crisis and ever-evolving economic conditions.

Despite rising confidence, gaps in financial protection remain, with almost half of workers (48%) lacking any form of protection cover.

Yet, LV’s research showed that a significant portion would feel more secure with an income protection or critical illness product in place.

Half of workers surveyed said they would feel more resilient with insurance that covers monthly outgoings during illness and injury, and a similar number believe a lump-sum payout for serious illness or death would boost their financial confidence.

Mike Farrell, protection sales and marketing director for LV=, said: “This is a significant moment, and with increasing optimism, people are rethinking their financial priorities.

“Our research has revealed this as an ideal time for advisers to have meaningful conversations with their clients about the importance of protection.

“Whilst it’s encouraging to see financial confidence on the rise, our findings show that the right protection could further strengthen this sense of security.

“LV= is here to help advisers support clients in building financial resilience with tailored solutions offered as part of the LV= Flexible Protection Plan.”