A new nationally representative survey by Iress with YouGov and The Lang Cat has revealed how people across the UK are really feeling about their finances.
- 46% of UK adults say they feel financially secure.
- Only 11% meet the benchmarks of true financial security.
- The UK’s overall Financial Readiness score is 44.2 out of 100, placing the nation in the “financially uncertain” category.
These are the headline findings from the new Iress Financial Readiness Index - a nationally representative study conducted by YouGov among 2,103 UK adults, with independent analysis and benchmarking by The Lang Cat.
At a time defined by rising cost of living and economic uncertainty, the Index offers a clear, data-led measure of how prepared people actually are, not just how secure they feel. The findings highlight a clear gap between perceived and actual readiness.
What is financial readiness?
Financial readiness is a measure of a person’s ability to meet both current financial commitments and future financial needs with confidence and resilience.
It goes beyond income levels or savings balances. It reflects whether someone:
- Stays on top of bills consistently
- Holds adequate emergency savings
- Has appropriate insurance and protection
- Actively contributes to retirement planning
- Invests for long-term growth
- Feels in control of day-to-day finances
Understanding readiness offers insight into household priorities, pressures, and behavioural gaps, helping advisers and the wider financial services ecosystem better support UK adults at every stage of life.
About the Iress Financial Readiness Index
Iress commissioned the Financial Readiness Index to provide advisers with a data-led, holistic view of how UK consumers feel about their finances, how they behave in practice, and how ready they are for the future.
Key elements of the research include:
- Financial confidence and daily money habits
- Protection, home ownership, and retirement planning
- Nationally representative data across demographics
- Benchmarking to highlight gaps and barriers to financial security
The Index exposes a clear disconnect in the market: while 46% of adults believe they are financially secure, only 11% meet all benchmarks for true financial security.
Key Findings from the Iress Financial Readiness Index
| Metric | Insight |
|---|---|
| Overall readiness score | 44.2 / 100 - 'financially uncertain' |
| Financial security gap | 46% feel secure, only 11% meet benchmarks - gap of 35% |
| Protection gap | 41% feel protected, only 19% have adequate cover - gap of 22% |
| Home ownership gap | People overestimate first-time buying age by 5.7 years |
| Retirement readiness gap | People underestimate retirement age by 2.8 years |
| Perceived benefit of advice | 35% say they would benefit from professional financial advice |
| Confidence in lifestyle | 49% feel confident living the life they want |
| Self-rated financial readiness | 5.6 / 10 on average across savings, protection, bills and retirement planning |
Financial readiness across life stages
The Index show that financial readiness is not uniform across age groups:
- Younger adults: Focused on building savings, investing, and securing housing. Many are constrained by high rental costs and student debt.
- Mid-life households (35–44): Most financially exposed, balancing mortgages, childcare, and rising living costs. Readiness scores dip noticeably.
- Adults 55+: Higher resilience due to established savings, clearer retirement plans, and reduced housing costs, though retirement adequacy remains a concern.
Gender also plays a role: men report higher readiness than women, reflecting differences in confidence, savings behaviour, and long-term planning.
The confidence gap: perception vs reality
The Index highlights a clear gap between perceived and actual readiness:
- Nearly half feel financially secure
- Only 11% actually meet all readiness benchmarks
- 17% feel prepared to meet none of their financial needs
This gap shows that confidence alone does not equate to resilience, leaving many households vulnerable to shocks like unexpected bills, job changes, or health events.
Turning insights into action for UK financial advisers
The Index offers practical opportunities for financial advisers to turn insights into actionable strategies that support clients and comply with Consumer Duty.
1. Highlight the gap between perception and reality
Many clients believe they are secure, but only 11% meet all benchmarks. Advisers can use this to spark conversations and demonstrate value, supporting the Consumer Understanding outcome. Examples include newsletters, social posts, or client reviews.
2. Tailor messaging by life stage
Readiness varies by age. Mid-life clients (35–44) often feel most pressure. Life-stage-specific messaging improves relevance and helps clients understand products that meet evolving needs.
3. Build client confidence through planning
Only 37% of non-retired adults feel confident they will retire when they want. Advisers can use insights to strengthen retirement and financial planning conversations, reassuring clients and supporting confidence.
4. Engage clients early with education and tools
Many clients save but do not invest or lack protection. Webinars, guides, calculators, or the Financial Readiness Index itself can educate and encourage earlier, informed engagement.
5. Focus on key financial gaps
Protection, retirement, and home ownership gaps show where advice is most needed. Advisers can create content around life events such as buying a home or starting a family, helping clients access services that genuinely meet their needs.
Why it matters: By turning insights into action, UK advisers can bridge the gap between confidence and preparedness, enhancing client engagement, resilience, and regulatory compliance.
Why the Financial Readiness Index matters
The Index provides a credible, data-led benchmark for financial security in the UK. It highlights:
- National trends in confidence and preparedness
- Behavioural gaps in savings, protection and retirement planning
- Opportunities for advisers and the financial services sector to add meaningful value
In a time of economic uncertainty, the Index encourages better-informed decisions, proactive planning, and stronger household resilience.
Explore the full findings
Visit the Iress Financial Readiness Index microsite
The Financial Readiness Index is designed as a practical tool for advisers and consumers alike.
All findings are freely available to support better financial conversations and consumer outcomes.
Visit the Iress Financial Readiness Index microsite to explore the data and analysis, and for resources to help turn the insights into action.
