Some 46 per cent of UK adults are worried their standard of living will fall over the next 12 months.
Research by Handelsbanken Wealth and Asset Management found concerns over standard of living was highest among those in their 30s (55 per cent), dropping to 38 per cent for the over 50s.
The cost-of-living crisis, high prices caused by inflation and energy prices are the biggest factors threatening people’s standard of living.
According to the research, more women are concerned about most external risks to their finances compared to men.
Some 79 per cent of women are worried about their finances compared to 72 per cent of men, while 83 per cent of women are concerned about a recession compared to 73 per cent of men.
On the other hand, men are more concerned about losing wealth through divorce compared to women (24 per cent versus 19 per cent).
While 47 per cent of women are likely to fear the financial impact of their partner or spouse dying with 42 per cent of men feeling the same.
Alasdair Wild, area manager at Handelsbanken Wealth & Asset Management, said: “Dealing with the ongoing cost-of-living and keeping your finances in check can be a time-consuming process and a real challenge for most people given there are only so many hours in the day.
“However, doing the bare minimum is unlikely to offer much protection in such a tough financial climate, and investing time to plan and manage your finances and, when required, bringing in external professional support, can make a real difference to protecting your standard of living.
"While avoiding the issue may provide temporary relief, it will only exacerbate problems down the line, so seeking support is key.”
The research also found consumers spend more than six hours a month on their finances with wealthier people spending longer keeping their financial house in order, averaging eight hours a month.
Some 29 per cent said they plan to reduce the time spent looking at their financial affairs as it makes them feel too anxious.
Handelsbanken Wealth & Asset Management said this may go some way towards explaining that a significant proportion of people don’t currently spend any time at all reviewing commitments such as their pensions (33 per cent), insurance (31 per cent) or investments (23 per cent).
alina.khan@ft.com
