EXCLUSIVE INTERVIEW
‘ The wealth accumulator ’ Scoring well on money points , this group has a high level of wealth now ( and probably still will have in the future ). When it comes to creating a healthy financial mindset – they might not have spent the time thinking ‘ What ’ s it all for ?’.
‘ The spender ’ Earning a decent income , ‘ spenders ’ are getting by OK , but often can display here and now tendencies . They score poorly when it comes to our ‘ mindset ’ building blocks – perhaps because they haven ’ t given any thought to what truly gives them joy or purpose and often can make poor societal comparisons .
‘ Challenging circumstances ’ This group has the least ‘ money ’ and ‘ mindset ’ points . Earning a low income can make achieving financial security much harder . Worrying about money and how to cover everyday expenses also means their focus could be less on preparing for the future or knowing what brings them joy and a sense of purpose .
‘ The strategist ’ These people tend to earn well and probably have rainy day funds to rely on . They score better than their ‘ wealth accumulator ’ peers when it comes to ‘ mindset ’ blocks – but strategists might not have as robust a picture of their future selves as they could / Their goals are likely to be largely centred around security and probably on what makes them happy or gives them purpose .
‘ The Economist ’ People in this category are relatively well off – their pay cheque tends to be reasonable . They have enough to comfortably cover all bills and are likely to be saving adequately . ‘ The Economist ’ might have given some thought to their future , but perhaps don ’ t have concrete goals or a written plan .
‘ Modest means ’ They like to focus on the little things in life and typically have decent financial mindset behaviours . Likely on a low income , saving for retirement feels really tricky . This group might not need to count every penny , but would probably struggle to over an unexpected expense .
‘ All-rounder ’ This is the highest possible scoring group of people on our index . These people are very financially comfortable and can enjoy life now – whilst planning for their future . The all-rounders balance the importance of money and mindset well – and are ready for what the future holds .
‘ Comfortably off ’ They ’ re comfortable with their current financial situation as it meets their lifestyle now . Scoring middle of the road when it comes to mindset – they ’ re able to focus on what gives them joy and purpose in life now . But they might need more financial freedom into retirement .
‘ The Striver ’ These people balance their typically low incomes and savings by having a clear financial outlook . They don ’ t need to spend lots on flashy items and probably have a plan to improve their limited finances With a longterm perspective , they are likely to know what they are likely to want their future self to look like .
What do you believe that advisers can learn from this research ?
I think that there ’ s plenty that we can all learn from this research ; about consumers overall , our clients and ourselves . Those with the healthiest relationship with money sit in the ‘ All-rounder ’ category . However , as you can see , we have found that most of the UK don ’ t fit in that box at present ! Most people fit into another category , but this doesn ’ t mean that they are failing , just that they are on different stages of the journey to true financial wellbeing . For advisers , understanding where their clients are on this individual path currently is key to knowing how best to help them . Our research talks a lot about relationships with money , and I think viewing it in that way is really helpful . A good relationship means that everyone in the relationship understands that it needs ongoing work . Just because the relationship is good now , doesn ’ t mean it can be neglected . Another sign of a good relationship is one in which both partners understand who ’ s contributing positively to a relationship and who perhaps isn ’ t so much . When this is translated this into a relationship with money , obviously we lose the human element of intent , but money can still have a positive or negative impact on your life . That ’ s not just because of how much or how little someone has , but also because of beliefs , emotions and practices around money . Where the human element does come in , is through a client ’ s relationship with their financial adviser . Advisers are in an unparalleled position to understand their clients ’ deeper , intrinsic motivations and help them have more control over their finances and achieve a better money mindset . The advent of digital advice delivers new efficiencies for transaction-only services , but our research tells us that the relationship between client and adviser has never been more important , nor more valued .
You can now find all Aegon ’ s financial wellbeing support for advisers in one place aegon . co . uk / financialwellbeing
This includes further details of this key research , a new video miniseries , articles and our new financial wellbeing tool .
More about Thomas Mathar …
An internationally experienced customer and behaviour researcher , he has held a breadth of research roles on both agency and client-side ; healthcare , consumer industries and financial services ; public and private sector . Dr Mathar is currently at Aegon , leading initiatives of its Centre for Behavioural Research .
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