- Research from Phoenix Group looks at the triggers that encourage people to talk about money
- Over a third of adults (36%) who discuss money with family and friends do so to avoid any mental or emotional health issues
- Writing a will would encourage 14% of adults who rarely discuss money to do so
- Divorcees are much more likely than others to shun talking to family or friends about their finances
Phoenix Group, Europe’s largest life and pensions consolidator, today reveals that nearly 12 million1 UK adults talk openly about their finances with family and friends to avoid any mental or emotional health issues. One in three UK adults (33%) talk about their finances because they firmly believe that it simply makes sense to talk and plan things together, including your finances, and one in five (21%) of adults say they proactively talk about their finances because they want their children to know about money.
The Phoenix research shows that these days, about two thirds of the adult population in the UK (63%) is happy to talk regularly with family and friends about money, or at least sometimes. However, there is still a group of people, a third of the UK population (37%), who don’t believe talking about money is the right thing to do. They say it is too boring (13%), feel it is inappropriate (16%) or awkward (11%) and a large portion of them claim their finances are private (31%) and have nothing to do with their family or friends. This sentiment that money is private and not to be discussed is particularly true amongst over 55s (39%), while just one in four (26%) 35-54 year olds hold this view.
Financial wellbeing and mental wellbeing are often linked. According to the Money and Mental Health Policy Institute2 , over three million adults have both mental health problems and financial difficulties. With British household sentiment at an 11-month low amid job fears3 , reflective of the slowing economy, people’s financial worries could increase.
David Woollett, Head of Customer Strategy and Oversight for Phoenix comments:
“Engaging with your finances is critical, but we know that some people simply don’t talk about their plans. Sadly our policy tracing work has shown that many people have passed away without their beneficiaries even knowing where their financial policies are. Since September 2016 we have repatriated almost £13 million of lost policies through our proactive campaign to ensure policyholders, or their estates, do not lose out. It’s evident that talking with family and friends about financial plans can help avoid unnecessary financial anxiety and stress for those who are left behind.”
Phoenix’s research also found that divorcees are least likely to talk to family or friends about their money, with more than half (57%) saying they rarely or never discuss it with them at all.
Psychologist Donna Dawson says: “Money problems have always been more of an emotional issue than a numerical one; this is because the way we handle money is intimately tied up with our self-esteem and self-image, as well as feelings of pride, guilt, shame and anxiety. Keeping negative emotions inside ourselves will eventually take a toll on our physical and mental health. Most people realise this, and the adage “Better out than in”, has never been more true: talking about money problems, especially long-term ones, can offer clarity, shared ideas and empathy, reveal more options, and lead to better, more positive outcomes.”
David Woollett, Head of Customer Strategy and Oversight, Phoenix adds: “It’s encouraging to see that 12 million people recognise that engaging with their finances and talking about money can lead to a healthier mental state. However, there are still people who are suffering with financial issues alone, and risk impacting their health. With April being National Stress Awareness Month, if you’re not already, it’s a perfect time to consider speaking to friends, family, a financial adviser or your insurer, about your finances, particularly about any concerns you may have.”
The Phoenix research revealed the major life events can act as a trigger to encourage people who rarely or never discuss their finances to do so:
| Top 5 life events that trigger financial conversations | % of people triggered to talk about their money |
|---|---|
| Preparing a will | 14% |
| Buying a property | 11% |
| Saving for something together e.g. a holiday or new home | 10% |
| A health scare | 9% |
| Getting into debt, becoming overdrawn, maxing out my credit cards and being unable to make the repayments | 7% |
Source: Opinium Research; 22nd – 24th January 2019
-Ends-
Enquiries
Shellie Wells
Head of Corporate Communications
Phoenix Group
020 3735 0922 / 07872 414 137
shellie.wells@thephoenixgroup.com
Darcy Lillie
Media Relations Consultant
Phoenix Group
020 3735 0102 / 07814 773 280
darcy.lillie@thephoenixgroup.com
Notes to editors
Phoenix Group is Europe's largest life and pensions consolidator, specialising in the acquisition and management of closed life insurance and pension funds – known as heritage books. Phoenix is the largest consolidator of heritage life insurance books in Europe but also runs an open book underpinned by a strategic partnership with Standard Life Aberdeen. The Group is a member of the FTSE100 index, and has over 10 million policies and £226 billion of assets under management – including the recently acquired Standard Life Assurance business. With operations in the United Kingdom, Ireland and Germany, the Group has four operating life companies which hold policyholder assets, and a distribution business, SunLife Limited.
1 In a nationally representative survey of 2003 UK adults, 456 said they talk to their family or friends regularly or sometimes because they think it is healthy to talk openly amongst family to avoid any mental or emotional health issues. 456 / 2003 * 52,079,000 (UK adult population) = 11,856,228 or 11.9 million.