Financial habits stuck in the past? Life moves on

A lot can change in ten years. Promotions, pay rises, buying a home, starting a family or simply taking on new responsibilities, can all dramatically shift your financial needs. While life rarely stands still, many people’s money habits do.

New research¹ reveals that despite experiencing major life changes over the past decade, nearly a third (32%) of UK adults have failed to update their savings, pensions or protection plans accordingly – that’s around 18 million people.

The findings point to a growing disconnect between people’s current lives and how they manage their money. Despite rising incomes, a third of adults say they are saving no more than they did ten years ago, while 28% admit they are saving even less.

Pensions are another area where people are falling behind. Almost four in ten (39%) have not increased their pension contributions in line with pay rises, while 32% continue to rely on default contribution levels.

This lack of action could have long-term consequences. Over half (57%) worry they’ve missed opportunities to grow their wealth, while more than a third (34%) say their emergency savings would not cover three months of expenses.

Cost-of-living pressures, the pandemic and wider economic uncertainty have all put pressure on household finances. Even where incomes have increased, they have not always kept pace with everyday expenses, but procrastination can mean missing out on valuable tax relief, allowances, stronger investment growth, financial security in the long-term and the right level of financial protection.

Managing your money as if it were 2016 could leave you underprepared for the life you’re living today and for the future you hope to live. Financial inertia can wreak havoc with your finances. Even in the face of financial challenges, small refinements now could help your money work harder for your future.

A summer financial reset doesn’t have to mean a complete overhaul. Reviewing your pension, savings, protection and updating us on any changes to your circumstances and financial situation can make a meaningful difference over time. Get your money working as hard for you as possible.

Small updates now can strengthen your future finances.

¹L&G 2026

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.