On 28 October 2015, the Money Advice Service, in conjunction with the UK Financial Capability Board, published a 10 year Financial Capability Strategy. This aims to improve adults’ ability to manage money day-to-day, prepare for and manage life events, and deal with financial difficulties. A Capability Strategy was seen as necessary as:
- Around four out of 10 adults are not in control of their finances.
- One in five adults cannot read a bank statement.
- Four in ten adults have less than £500 in savings.
- One in three adults cannot calculate the impact of a 2% annual interest rate on £100 in savings.
With the predominant attitude being a ‘spend today rather than save for tomorrow’, and limited financial resilience, the strategy focuses on every key life stage and challenge: children and young people; young adults; working age people; savings; retirement planning; older people; and people in financial difficulties. Specific actions for the devolved nations will be delivered in Scotland, Wales and Northern Ireland. Progress will be monitored by the Financial Capability Survey.