More than 24.5 million people (46%) are financially disengaged, claims new research.
The study by from Legal & General Retail also shows that one in 20 adults – the equivalent of 2.4 million2 people – were previously financially engaged before changing their behaviour.
Key reasons for this change include feeling financially secure enough to be less diligent with managing their money (20%), or because other areas of their life have become busier (18%). However, almost a fifth (17%) couldn’t state a reason.
On average, pre-retirees (those aged 55+ who are still in work) are more financially engaged than the rest of the population (62% compared to the UK average of 54%). But many are still inactive when it comes to their retirement planning, suggesting people might not know where to start.
More than a third (34%) do not currently check their workplace pension while 28% do not currently review their personal pension. Separate research3 from the provider shows one in five people still reach midlife without having engaged with their retirement at all.
Katharine Photiou, Managing Director of Workplace Savings at Legal & General said: “Taking small steps to improve your money habits can have a huge impact on your life. It can also help you feel more in control of your financial situation.
“Against a landscape of rising costs and record levels of inflation, it can be easy to bury your head in the sand. However, as our research shows, periods of financial difficulty can be one of the leading reasons people take charge of their finances.
“While it’s positive that pre-retirees, in particular, are more financially engaged than the average person, it is concerning that they aren’t engaging in vital steps to prepare for retirement, such as checking their pension.”
