Almost two-thirds of UK workers do not have a financial plan beyond the next 12 months, risking poorer outcomes in retirement, according to new research.
The findings were part of Fidelity’s Global Sentiment Survey, which looked at the financial priorities of 38,000 workers across different geographical regions. However the survey founds that employees were increasingly open to using AI solutions and digital tools to support retirement planning.
The research found that there was often a mismatch between employees’ financial priorities and their planning horizons. In the UK 64 per cent said they didn’t have a financial plan beyond the next 12 months – with 43 per cent not planning beyond a couple of months, and 21 per cent having a financial horizon of only a few weeks.
Despite this short-term focus, workers recognise the importance of addressing their longer-term financial needs. Four in 10 employees (40 per cent) said that increasing their savings and investments is their most pressing financial need.
Fidelity said these findings point to an opportunity for employers and providers to support employees in building more structured financial plans.
The research also found that UK workers are increasingly open to using digital tools, including AI, to help address this gap. Almost two-thirds (64 per cent) say they would, or already do, use AI to help them understand how much money they will needin retirement.
More than half would consider using AI to support investment decisions within their workplace pension (54 per cent) or to help with budgeting and short-term financial planning (52 per cent).
However, the research also highlights the importance of human interaction. In the past six months, 13 per cent of UK working adults have spoken to a financial adviser. Surprisingly his figures is slightly higher among younger workers, suggesting many employees value the personalised guidance and reassurance that comes from speaking to a person.
Fidelity head of workplace, investing distribution Daniel Smith says: “Many employees are understandably focused on managing their day-to-day finances, but our research shows that this can come at the expense of longer-term planning.
“What’s clear is that there is no ‘one-size-fits-all’ answer. Digital tools, including those powered by AI, have an important role to play in helping employees understand their financial position and model different scenarios. However, many people continue to value the opportunity to speak to someone – particularly when making more significant or longer-term decisions.
“For employers, this presents a clear opportunity. By working with providers to offer a blend of digital support and human guidance, they can help employees take a more joined-up approach to their finances – supporting better outcomes for individuals. In turn, this can help to strengthen their employer value proposition – helping to attract and retain talent, while building a more engaged, financially resilient and productive workforce.”
He adds: “Having a clear financial plan can help people feel more in control of their money, provide greater confidence in decision-making, and improve overall financial wellbeing. Yet for many, knowing where to start – particularly when balancing short-term pressures with long-term goals – remains a challenge.
“Putting a plan in place doesn’t need to be complex, but it can make a meaningful difference – helping people feel more in control, make better-informed decisions, and feel more confident about their future.”