Half of UK adults (49%) feel more uncertain about their future than they did two years ago and many are cutting back spending or raiding their savings to cope.

One in four, 26%, feel much more uncertain, and less than one in five, 18%, feel more certain.

A study by St James’s Place showed that almost half, 45%, feel uncertain due to concerns surrounding government support for pensions, welfare and long-term care.

Almost three quarters, 72%, of those feeling less certain have already taken financial action – but not always in ways that benefit their long-term finances.

Two in five are cutting back with 41% saying they have reduced non-essential spending. One in five, 18%, have dipped into savings while almost one in eight, 12%, have taken on debt or credit to cover expenses

Almost a quarter, 23%, said they have increased their savings or investments, with a fifth, 20%, boosting their savings pots or emergency funds and 6% making additional investments.

More than one in eight, 13%, have delayed or cancelled a major decision, such as buying a home or changing jobs, while another 13% have avoided financial decisions altogether, according to the research.

Mark FitzPatrick, CEO of St James’s Place, said: “Periods of uncertainty, especially when major or unexpected events happen, are unsettling. Seeing the immediate impact on finances, feeling unsure of how your money will recover or be affected in the medium and long term, and facing decisions of whether to take action or not, can feel overwhelming. In these moments, professional advice can be invaluable.”

According to the study, those who receive ongoing advice feel more optimistic than those who don’t (51% v 34%) and are ahead of or on track against financial goals (85% v 65%), despite the economic and market challenges.

SJP has called for action to close the advice gap and to allow greater financial education to help people navigate the uncertainty.

Mr FitzPatrick  said: “All parties – government, regulators and the industry – have a responsibility to ensure people can access support that helps them cut through complexity and build a better financial future. In addition to continuing to attract a new generation of advisers into the industry, supporting financial education and championing reforms that close the advice gap are key.”

The figures are taken from SJP’s Real Life Advice Report, now in its second year, where the firm commissioned Opinium which surveyed 8,000 UK adults between 22 July and 5 August. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.