Some good news is that Covid-19 has encouraged consumers to address their debt, with 57% of Brits stating that paying off debt has become more important to them since lockdown, rising to 65% among 25-40 year-olds. Having said that, two-thirds (66%) of households have at least some level of debt, with over 1 in 10 (11%) households currently managing more than £10k worth of debt.

One of the main ways people cope with losing their income is to rely on their savings (1 in 3), yet 1 in 5 households have no savings at all. The report found that people felt they would need £12,207 to feel financially secure, but it would take the average household four years to save this amount based on what it saves each month. Worryingly, it would take 14 years to save a full year's earnings.

All of this means financial planning has never been so important, and it demonstrates the crucial role financial advisers play in helping their clients see through the myths and misconceptions to help build financial resilience.

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IRESS Limited published this content on 21 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 January 2021 11:33:07 UTC