Almost a fifth (18 per cent) of UK adults do not have or cannot identify a long-term financial goal, new research has found.
Nearly one in five people surveyed said they did not know what they wanted their finances to achieve over the next five years or more.
The proportion climbed to nearly one in three among lower earners, with 30% of adults with household incomes of up to £25,000 having no clear financial priority for the future.
That falls to 18% among those earning between £25,000 and £50,000, 7% among households earning between £50,000 and £75,000, and just 5% among higher earners with incomes above £75,000.
Scottish Friendly said its findings suggested that the capacity to look beyond everyday outgoings is closely linked to household income. The mutual’s research also showed how people’s focus on the future changes as families move through different stages of life.
Almost all parents of very young children have identified a longer-term financial priority, including 96% of those with children aged one to four, and 94% of parents with children aged five to 10.
That proportion dips to 91% among parents of children aged 11 to 15 and falls further to 86% among those with children aged 16 or 17.
It declines further once children reach adulthood, to 76% among parents whose adult children still live at home and 74% among those whose children have left home.
Kevin Brown, a savings expert at Scottish Friendly, said: “It is concerning that nearly one in five people has no clear idea of what they want their finances to achieve. It is hardly surprising, yet no less concerning, that this rises to almost one in three among those on lower incomes.
“Long-term direction is not only for those with substantial sums to save, since where budgets are tighter, being clear about future priorities can matter even more – even if immediate costs leave little room to act.”
• Source: Scottish Friendly Family Finance Tracker Survey, an annual snapshot of the investing and savings habits of UK households. The research was carried out between March and April using a nationally representative sample of 2,500 participants.