Only 1 per cent of the UK is financially fit
Abbey have released a national survey today revealing the financial fitness across the UK. Wales and the South West are the two fittest areas in the UK today!
The survey looked at the overall competitiveness of each of the financial products a consumer had and then how frequently they shopped around comparing products for a better deal. The products assessed were bank accounts, mortgages, savings, insurance and credit cards. A score of zero indicates a financially fit consumer and 100 is the financial equivalent of being obese.
Men came out at an average of 41 per cent overweight, while women were worse at 46 per cent average, overweight. Of the women, 25 per cent have not shopped around for insurance products; 31 per cent have not got their mortgage at the most competitive rates; and 70 per cent have either no savings or just enough to get by for around 3 months. In comparison the men were 26 per cent for mortgages, 17 per cent for insurance and 61 per cent for savings.
Director at Abbey, Sue Hayes, said: “The research suggests that the majority of people are in need of a financial workout to get their finances in peak condition for 2008. As many gear up to shift the pounds they pile on over the festive period, we would encourage people to review the financial products they hold and shop around to ensure that they are getting the most competitive deal available. Like exercise, a financial workout can take a bit of effort but for most people the rewards are well worth the exertion.”
Other key findings are;
Current accounts
- Forty one per cent of people have had the same bank account for more than ten years. This figure is highest with the over-55s (61 per cent) and the Scots (48 per cent).
- Seventy four per cent of people have a current account with an in-credit interest rate of less than three per cent.
Credit cards
- Sixteen per cent of people carry a balance on a credit card at their lender’s standard rate.
- Women are significantly more likely than men to be paying through the nose on their plastic with 21 per cent revolving a balance at a standard rate (versus 12 per cent of men).
Mortgages
- Only 53 per cent of people regularly review their mortgage to get a better deal.
- Twenty nine per cent of homeowners do not have their mortgage at a competitive rate with this proportion.
Insurance
- Twenty one per cent of people renewed their home insurance without shopping around and a worrying four per cent do not have any home insurance at all.
- Those living in the South East were most likely to renew their insurance without shopping around (27 per cent).
Savings
- Only 34 per cent of the population have enough savings to be able to maintain their current standard of living for at least three months. This figure increased to 56 per cent amongst the over 55s.
- Seventy eight per cent of Scots had either no savings at all or not enough to be able to maintain their current standard of living for three months.
Only half of those with a savings account have recently shopped around to get the best rate.
Table one: The financial fitness of the nation
Score /100 % of UK population falling into band
1-10 1%
11-20 9%
21-30 17%
31-40 28%
41-50 16%
51-60 15%