New research from Scottish Friendly, conducted by the Centre for Economics and Business Research (Cebr), found that 18% of people who own their home outright view their financial position as ‘uncomfortable’, with 7% describing it as ‘very uncomfortable’.
These findings were part of Scottish Friendly’s 2024 Family Finance Tracker, which examined the savings and investment habits of UK adults.
While the majority (62%) of outright homeowners said they were comfortable, 40% described themselves as only ‘somewhat comfortable’.
A significant number of those feeling uncomfortable were at life stages where they are juggling multiple financial priorities.
7% of respondents were aged between 25 and 34, 7% were 35 to 44, and 13% were 45 to 54, while the majority (43%) were 65 or older.
For those still paying a mortgage or rent, perceptions of financial comfort varied.
Among those who owned or jointly owned with a mortgage, 35% were comfortable and 38% uncomfortable.
Among those with shared ownership or equity, 39% reported being comfortable and 39% uncomfortable, while among those renting from private landlords, 25% said they were comfortable and 50% uncomfortable.
Renting from social or charitable landlords resulted in 23% of people feeling comfortable and 54% uncomfortable.
Among those living with their parents, 34% reported being comfortable and 43% uncomfortable.
Significant portions from each group also reported dealing with debt.
Among those with a mortgage, 33% were managing credit card or personal loan debt, while 30% of private renters faced similar debt challenges.
Kevin Brown, savings specialist at Scottish Friendly, said: “These findings are somewhat surprising, because conventional wisdom says once you’re mortgage-free, you should be moving towards being home and dry.
“However, what we found was that, for whatever reason, it’s not what it feels like for many people who are lucky enough to be mortgage-free and not having to pay rent.”
Brown added: “What it brought home, however, was the importance of having plans in place for your short-term, medium-term, and long-term financial needs.
“These should not only provide a buffer against potential future knocks, but help you to build up sufficient financial resilience to be able to enjoy life free from money worries.”
“It can feel daunting to acknowledge that your financial resilience is not what you need it to be. And even more daunting is to take action, with that first step getting yourself on a sound financial footing.
“It’s important to remember that no matter how small a first step, it is nonetheless a step in the right direction and in taking it, you are taking back control of your situation.”
