Chris Hill, CEO, Hargreaves Lansdown, says:
“We have been helping our clients build financial resilience for 40 years, but we wanted to go further. We wanted to better understand Britain’s financial resilience as a whole, to help policy-makers see which groups need the most help and attention.
Building on these insights, Hargreaves Lansdown is delighted to launch a series of new tools that allow people to explore their own resilience. These will help to ensure households can better understand their own financial resilience and take more informed actions to build on their savings and improve their financial situation.
Investing remains a minority activity and if we are serious about improving financial resilience for all, we need to make saving and investing an everyday activity. Several steps would help, including better financial literacy, and the financial sector can play an important role here. One vital step forward would be changes in the rigid advice rules to allow firms to give people simple, more personalised, guidance and nudges to help them improve their financial outcomes.”
About the HL Savings and Resilience Barometer
In partnership with Oxford Economics the HL Savings and Resilience Barometer measures the financial resilience of the nation every six months, to see whether we are getting stronger or facing bigger challenges.
It is structured around the five pillars of financial behaviour that we consider fundamental for households to balance current and future demands, while guarding against risks. These are: controlling your debts, protecting your family, saving for a rainy day, planning for later life and investing to make more of your money.
The Barometer is unique because instead of looking at specific aspects of our finances in isolation, it draws together 17 data points from a number of official data sets, across these five pillars, to provide a holistic measure of the state of the nation’s personal finances.
The aim of our work in this area is to help to promote awareness and understanding, inform the debate, and ultimately help improve the decisions individuals and policymakers make to improve financial resilience.
The Savings and Resilience Sounding Board
We are grateful for the initial thoughts from the savings and resilience sounding board in November 2021. Hargreaves Lansdown established this sounding board to bring a broader set of views and insights into this research project. Members are drawn from a variety of backgrounds. Representatives from StepChange, Nationwide Building Society and Legal & General shared their expertise from working with client groups particularly impacted by resilience issues in specific pillars. The Money and Pensions Service, HM Treasury, Department for Work and Pensions and the Financial Conduct Authority all shared perspectives from the research and work they conduct. Finally, the Personal Finance Research Centre at the University of Bristol, the Resolution Foundation and Nest Insight have all shared views from their research backgrounds.