The body says 22m do not know how to save properly for retirement and 11.5m others have less than £100 in savings to fall back on.
The personal finance body says it wants to “transform the country’s financial wellbeing in a decade” through education and savings campaigns.
It has developed a national financial wellbeing strategy after listening to 1,000 leaders and frontline specialists in financial services.
It plans to focus on 5 key areas in its UK Strategy for Financial Wellbeing:
The key targets by 2030 are:
1. Financial Foundations: 6.8m children and young people getting a ‘meaningful financial education’ - an increase of 2m from 2019
2. A Nation of savers: It wants 16.7m working age people who are ‘struggling and squeezed’ saving regularly - an increase of 2m
3. Credit counts: 2m fewer people “often” using credit to pay for food or bills
4. Better debt advice: 2m more people getting debt advice
5. Future focus: 28.6m people “understanding enough” to plan for their later lives - an increase of 5m
The strategy will also examine issues which can cause financial detriment, such as mental health conditions and gender.
MAPS, which has 350 staff, plans to work with a broad range of organisations and experts to deliver the strategy.
It says that poor financial wellbeing affects mental health, physical health and relationships. It believes that currently 11.5m people have less than £100 in savings to fall back on, 9m often use credit to pay for food or essential bills, 22m say they do not know enough to plan for their retirement and 5.3m children are not getting a meaningful financial education.
Over the first half of 2020, MAPS will work with leaders and experts across the public, private and voluntary sectors to set out its plans. It will then go on to develop its strategy to deliver the plans.
Caroline Siarkiewicz, acting chief executive of MAPS, said: “Financial wellbeing underpins personal health and happiness but it doesn’t happen by chance. We’re launching a strategy for entire lifetimes, aiming to expand financial education for children while ensuring everyone is equipped to plan for and enjoy their retirement.
“The Money and Pensions Service will be the catalyst for a financial wellbeing movement, transforming how people engage with their money and pensions.”
MAPS is the unified, government-funded single personal finance consumer guidance body launched in April last year and bringing together three agencies The Money Advice Service, The Pensions Advisory Service and Pension Wise.
It suffered a setback when it lost its first chief executive after two months when John Govett resigned due to a family relocation. MAPS then appointed partnerships and commissioning director Caroline Siarkiewicz as acting chief executive.