A survey carried out by the Financial Conduct Authority (FCA) has suggested that 50% of individuals in the UK are ‘financially vulnerable’, with many having to make use of loans in order to pay bills and make ends meet.
According to the FCA’s Financial Lives Survey, 25.6 million UK adults ‘display one or more characteristics that signal their potential vulnerability’.
The FCA found that 13% of individuals aged between 25 and 34 are in financial difficulty, whilst single parents aged between 18 and 34 are the most likely to use high-cost loans.
In addition, 24% of UK adults stated that they have ‘little or no confidence’ in managing their finances, with a further 46% of individuals reporting that they have ‘low knowledge’ of financial issues.
Meanwhile, only 35% of those aged between 45 and 54 have thought about how they will manage financially once they retire.
Commenting on the findings, Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said: ‘Just because individuals could be vulnerable doesn’t necessarily mean they will experience actual harm, but these results help regulators and firms alike to understand where we should target our efforts.’