Northern Britons are more financially savvy than their Southern counterparts according to a new study from Octopus Money.
Britons had an average ‘money age’ of 32, almost ten years behind the average age of the UK population (41 years old).
Octopus Money tested 2,000 Britons knowledge of topics including investing, savings, pensions, protection and debt in January.
Those in the North West had the highest money age of 35, in comparison to 33 for those in London.
Britons in the East Midlands had the youngest money age at 32.
Men had an average older money age than women, with an average of 35 (compared to 32 for women). Men scored higher for their understanding and decision making across investing, savings, pensions and protection.
Kelly Atkins, head coach, at Octopus Money said: “Our research shows that the UK is about 10 years behind where they should be when it comes to money planning, with an average money age of just 32.
“We know it’s a very tough time for lots of us when it comes to money. But the key to being on track for our long-term financial goals is to take action as early as you can – even small steps can help.”
Pensions was the area that confused the highest number of those surveyed. Whilst 70% claimed to understand pensions but a quarter of those (23%) did not know the age at which they could start taking income from a workplace pension.
A quarter (24%) of those surveyed say they have started contributing to a workplace pension or a private pension. This is despite ONS data, which puts UK workplace pension participation rates at 79%, meaning that many workers may be completely unaware that they are in fact making automatic contributions.
Britons said they felt unprepared for retirement, with 62% of women and 45% of women not feeling equipped. Those between the age of 35 and 54 felt the least prepared (60%).
The cost-of-living crisis had led 50% of Brits to worry about how much money they will have at the end of the month, with a knock-on effect to later life plans.
More than two in five (43%) of those aged 35-54 said they had not made a will, paid into a private pension pot, spoken to an adviser or increased their workplace pension contributions.
