Almost a fifth (18%) of UK adults do not have or cannot identify a personal long-term financial goal, Scottish Friendly has found.

The firm’s latest Family Finance Tracker research revealed that this proportion said they did not know what they want their finances to achieve in the next five years or more.

The figure increases to almost one in three among lower earners, with 30% of adults with household incomes of up to £25,000 having no clear financial priority for the future.

This falls to 18% among those earning between £25,000 and £50,000, 7% among households earning between £50,000 and £75,000, and just 5% among those with incomes above £75,000.

However, Scottish Friendly says that thinking ahead remains important at every income level, even where there is limited scope to put money aside.

Its research also demonstrated how people’s focus on the future changes as families move through different stages of life.

Almost all parents of very young children have identified a longer-term financial priority, including 96% of those with children aged one to four, and 94% of those with children aged five to 10. This dips to 91% of those with children aged 11 to 15 and to 86% among those with children aged 16 or 17.

The mutual said its findings come as it calls for greater focus on helping people build the confidence and sense of purpose needed to engage with long-term savings and investing.

Savings expert at Scottish Friendly, Kevin Brown, stated: "It is concerning that nearly one in five people has no clear idea of what they want their finances to achieve. It is hardly surprising, yet no less concerning, that this rises to almost one in three among those on lower incomes.

"Long-term direction is not only for those with substantial sums to save, since where budgets are tighter, being clear about future priorities can matter even more – even if immediate costs leave little room to act.

"It is also noticeable that parents become less likely to identify a financial priority as their children grow older. That may reflect familiar goals changing as families move beyond education costs and support into adulthood. Although there is no single right objective, and priorities will evolve, having a sense of what money should support over time can give greater purpose to decisions made today."

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