The average amount needed for a basic retirement has increased by 60 per cent in the past three years, with savers becoming increasingly worried about their financial future as a result, Shepherds Friendly has found.

The survey revealed that 38 per cent of respondents regretted not saving enough into
their pension, while 39 per cent regretted not saving into a pension.

Meanwhile, 56 per cent expressed regrets over not saving more when they were younger, while other regrets included not investing money sooner (47 per cent) and not teaching themselves more about money topics (43 per cent).

In addition to this, 29 per cent of young adults aged between 18 and 24 felt the strain of financial pressures, indicating a link between financial well-being and mental health.

The research also explored financial literacy across the UK, finding that 60 per cent of Brits believe financial education should be a mandatory part of the school curriculum.

Yet, over half (51 per cent) of people in the UK failed the financial literacy test, despite 87 per cent saying they felt confident in their financial knowledge, suggesting substantial gaps in Britain’s financial literacy.

The survey pointed out that age played a crucial role in financial understanding, with 14 per cent of those aged 18–24 passing the test, compared to 67 per cent of those aged 65 and over.

Gender differences were also highlighted, with 54 per cent of men passing the test compared to 46 per cent of women.

Commenting on this, Shepherds Friendly head of communications, Graham Drummond, said: “Our survey showed that many people are unsure about things like budgeting, investing, and understanding financial products that can help them prepare for the future, such as ISAs and investing.

“It's not just about knowing the terms, but really feeling confident in making decisions that affect our financial well-being.

“To close these knowledge gaps, we believe it's crucial to start teaching financial literacy in schools and continue promoting it throughout our lives.

“Whether you're looking to improve your money skills or just starting out with building up your savings, there are plenty of ways to learn. You can explore online resources, join a workshop, or chat with a financial advisor.

“By boosting our financial knowledge, we can all make smarter choices, feel more secure, and build a better future for ourselves and our families.”

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