Research from specialist insurer Partnership has looked into the largest financial mistakes people make.
The top five mistakes were not saving enough (40%); not saving enough into a pension (19%); getting into debt (15%); being unable to earn more (11%) and making poor financial choices linked to family or friends (10%).
Partnership asked 2,000 people what they felt their biggest financial mistakes were and while 5% said they had not made any mistakes, the vast majority of people wished they had made different choices. 59% said they had not saved enough – generally or into a pension – while 15% said getting into debt was their biggest error.
10% cited making poor financial choices linked to family/friends and 7% highlighted getting married and subsequently divorced as being their largest blunders. The proportion that cite a failed marriage as their biggest misstep increases to one in 10 people over the age of 40.
Over 40s are also more likely to regret not saving enough into their pension (22% vs. 14%) while they are less likely to feel they have not saved enough generally (34% vs 50%). They are also twice as likely to have put money into an investment that has not performed (12% vs. 5%).
Mark Stopard, head of product development at Partnership, said: “Not saving enough, especially into a pension, was the main regret for all age groups – a problem which implies that either they do not earn enough or that they don’t have a firm handle on their finances. While it is relatively easy to make minor financial errors, that one in 10 people cite issues around salary and employment levels adds weight to the first argument and is worrying as it suggests that for some ‘mistakes’ are almost unavoidable.
“Interestingly, making poor financial choices linked to family/friends and getting married and subsequently divorced are also relatively high up on the list which suggests that sometimes the heart overrules the head when it comes to finances. It also serves as a stark warning to those who may be considering lending money or listening to advice from loved ones.
“While hindsight is 20:20, this list does highlight mistakes that other people can learn from! Indeed, no one cited saving too much as a problem, which certainly implies that, whenever possible, people should look to be as prudent as they can with their income and put aside what they can afford for later life or a rainy day.”