A quarter (25%) of UK adults have stated that they do not feel financially independent, research by Scottish Widows has found.

The firm’s latest Retirement Report revealed that the most common indicators for achieving financial independence include being debt-free (56%), having sufficient emergency savings (51%) and comfortably meeting daily expenses (43%).

However, Scottish Widows revealed that 37% of UK adults don’t feel that they could cover any unexpected financial emergencies.

Meanwhile, 33% said they don’t have any disposable income at the end of each month and 35% don’t feel they are able to save enough for retirement.

Furthermore, 15% haven’t even starting to prepare for retirement and do not plan to do so.

Scottish Widows found that Gen Z feels the sense of financial independence most acutely, with 32% of those in their twenties feeling like this, compared to 24% of those in their fifties. People with disabilities (45%) and renters (34%) are also less likely to feel financially independent.

The firm said its research highlights the link between people’s sense of financial independence and feeling empowered to take control of their financial futures.

Head of pensions policy at Scottish Widows, Pete Glancy, said that feeling financially independent is the "first step on the road to feeling financially empowered".

He concluded: "Savers face a myriad of competing financial challenges – from managing their daily household budget to unplanned emergencies. With 15.3 million people currently at-risk of poverty in retirement, there is a clear need to help people understand how much they will need to cover their living costs in retirement, how much their projected pension is, and how to take action if needed.

"But pensions should never be looked at in isolation. Accounting for goals like building emergency savings, housing security and considering other types of investments for the future is also key.

"Automatic enrolment has transformed how people save for retirement. But, as our research shows, to help more people achieve a decent standard of living later in life - especially those on low to middle incomes - targeted reforms are now needed. We’re calling on the Government to lower the auto-enrolment age to 18 and scrap the £10,000 earnings threshold, so more young, part-time, and self-employed workers who are currently excluded, can start saving for a better retirement."

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