There has been a fall for the first time in three years in the level of financial worries among UK adults, according to new research from MoneySuperMarket.
Annual research carried out by the UK’s number one comparison site gathered insight into the nation’s stress levels. It found that 15.6 million people (31%) are most concerned about their finances on a daily basis, compared to 18.4 million (36%) in 2013, and 34% in 2012. While the financial anxiety figure is falling, money worries still remain the nation’s main stress.
Of those who cite money worries as their biggest concern, 17% say it’s their current financial situation which is causing the most stress, with a further 14% worrying about their future financial outlook.
16% admit they are most anxious by their health and another 11% by their job. A relationship is the biggest strain for 12%, while 24% are not concerned by any of these factors. Those aged 18 to 24 are more than twice as likely to be worried about their current or future financial situation than those aged 65 or over (46% and 18% respectively).
Dan Plant, consumer finance spokesperson at MoneySuperMarket, said: “It’s great to see that the number of sleepless nights caused by money worries fell in 2014. That we’ve seen living costs, such as petrol and diesel prices decrease, coupled with an energy market which hasn’t raised prices this winter, is likely to have eased financial pressures for some households, and allowed us to unwind a bit.
“However, money troubles haven’t gone away and cause more stress than any other factor, particularly for younger people. Worrying about how you’ll make ends meet each month can really take its toll on your mental health so we want to raise awareness of the actions people can take to improve their finances and hopefully alleviate some anxiety.”
The survey found that 69% believe the agony will only increase in 2015. 47% blame the rising cost of living as a key factor in making their stress worse. A further 8% are concerned by squeezes to their benefits, and 6% are worried about their mortgage repayments, especially with speculation around possible interest rate rises in the next 12 months.
50% of UK adults are frequently or occasionally worried about their finances. Women feel the strain the most with 57% saying they worry about money compared to 43% of men. Again, the youngsters suffer more than the older demographic, with 66% of 18 to 24 year olds stating they frequently or occasionally worry about the state of their finances, compared to 29% of those aged 65 or over.
Furthermore, 59% of UK adults who are worried about their money believe other areas of their lives are affected as a result, with their wellbeing being the main concern. 33% say their financial anxiety affects their health – a slight increase from the 31% who said the same last year. 23% admit their relationship with their partner or spouse has been affected, while another 23% state that another area of their life has been affected.
Although 36% state that they are currently in debt, there has been a gradual decrease from previous years. Last year, 38% of UK adults were in debt, and in 2012 40% were in the red. Furthermore, the outlook for those who currently owe money is positive, as 37% of UK adults think they will be able to clear some type of debt completely within the next five years. 24% think they’ll be able to pay off their credit card, while 14% believe they will clear their personal loan, and 11% expect to settle their overdraft. However, the financial struggle is set to continue for the 15% who do not expect to clear any type of debt by 2020.