The Money Advice Service (UK)www.fincap.org.uk|@FinCapStrategy#TalkMoney|#FinCap17

Right Place, Right TimeJake Eliot, Head of PolicyMatthew Warren, Insight Manager

Helping people with their finances when they need it most

Only Half of all working-age people are aware they can access free or low-cost help

Too many people aren’t getting the help they need with their finances

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Struggling 24%

Squeezed 33%

Cushioned 39%

6 in 10 working-age adults are financially Squeezed or Struggling

People are only getting help with a quarter of the key financial events they face

25%

Financial Capability

Improving access to good quality, effective financial help is so important

But the greatest service won’t make a difference if people don’t use it

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Understanding why people don’t seek help

• Self-confidence

• Lack of trust

• Perceived importance

Exploring consumer engagement in the context of life events

Tackling specific barriers, in specific contexts

Client Name

Financial Capability

Money Advice Service

Understanding what people think about getting help

What did we do?

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Right Place, Right Time

Financial CapabilityRight Place, Right Time

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Presentation focus

• UK working-age population

• MAS’s financially Struggling and Squeezed segments

Struggling

Most vulnerable

Low income, low savings,

high over-indebtedness

Squeezed

Under pressure

Modest salaries, heavy

credit use, low savings

Cushioned

Financially resilient

Higher salaries, higher

savings to deal with shocks

Exploring 17 life events

3,545 UK working-age adults surveyed online

General finances Work & Benefits

Planning forRetirement

Family Home

Fieldwork: February – April 2017

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The questionnaire

Client Name

Financial Capability

Money Advice Service

The headlines

What did we learn overall?

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Right Place, Right Time

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Only 4 in 10 of those who did seek help got what they wanted

Thought needed help Sought help

Bought their first home

Started a new job / got promoted

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Started planning to access their retirement funds

Had to deal with a negative work event

42%

38%

60%

44%26%

25%

Thought needed help Sought help

Comparative example

25%42%

26%38%

60%

44%

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• Type of event the single biggest predictor of behaviour

• Certain demographics more likely to experience particular types of events than others

• But when experiencing the same event, demographic make-up has little impact on whether support was needed or sought

Role of demographics

Financial Capability

People with children in the home are typically more likely to seek help

Example: Negative family event

• Also the case for events with future planning / safe-guarding

• Parents have key role in developing their children’s understanding of how to manage money

• Presenting opportunity to engage

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With children 36% Without 21%

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People who are finding it difficult to keep up with their bills are more likely to seek help

Example: Positive work event

• Reassuring that people who need help are more likely to seek it

• But still a long way to go…can we do more?

Finding it difficult 32% Managing 16%

Client Name

Financial Capability

Money Advice Service

Making a major purchase

Negative family event

Becoming a parent or having another child

Spotlights

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Right Place, Right Time

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Spotlight: Making a major purchase

Confidence

Previous experience

Help from friends and family

Awareness

Quality concerns

Low perceived importance

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Spotlight: Negative family event

Confidence

Previous experience

Don’t want to pay

Awareness

Cost concerns

Low perceived importance

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Spotlight: Becoming a parent or having another child

Previous experience

Confidence

Help from friends and family

Quality concerns

Awareness

Low perceived importance

Client Name

Financial Capability

Money Advice Service

Key lessons and next steps

What next?

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Right Place, Right Time

Financial Capability

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Four key lessons

1. Awareness and trust – focused, timely and relevant

2. Parents and children – whole family services

3. Quality and relevance – understand people’s lives

4. Confidence – key area for further research

Thank you