According to Moneyhub, the middle-aged are the most likely to be feeling the pinch on their wallets, with 63% of those between the ages of 45 and 54 reporting financial worry. While 31% of respondents overall acknowledged delaying life objectives (including starting a family) because they couldn't afford it, the percentage increased to 48% for those between the ages of 18 and 34.

In the last 12 months, 44% of respondents indicated they had to take money out of their savings after a challenging year for their personal finances. In the meantime, 28% of people find it difficult to save, and 18% approach saving inconsistently, with some months doing better than others. Only 15% of respondents in total are able to set aside a sizeable amount of money each month for savings.

According to additional recent Moneyhub study, two out of five people fear they won't be able to retire because of difficulties communicating with their investment or pension providers.

Overall, 42% of customers said they had trouble interacting with their supplier, and 25% of them said that the lack of an app from their provider was the main barrier to contact.

This communication barrier between providers may be contributing to subpar client experiences. Thirty-six percent of customers between the ages of 35 and 44 stated that they are delaying adding to their pension because they are unsure of who their provider is, and thirteen percent of customers claimed they are unaware of this information.

Could the solution lie in open banking?

According to Moneyhub study, there is room for improvement in the assistance provided by banks, financial institutions, and pension providers. A little over 34% of respondents claimed that banks and other financial organizations make it difficult to comprehend finances, and 31% said that if they had a better understanding of their finances, they would save more money.

Sixteen percent of respondents stated that they would want reminders when it's time to save money or move to a better savings rate when asked what banks could do to make their lives easier. A quarter of respondents stated they wanted simpler ways to get in touch with customer support, and thirteen percent said they would want free money management apps that let them view and comprehend all of their finances.

"Our research makes it clear that there is an opportunity to help customers understand and manage their finances," stated Kim Jenkins, managing director of Moneyhub API. Through the utilization of current technological advancements, financial institutions such as banks can aid their clientele in comprehending their financial circumstances and offering astute recommendations to facilitate improved financial decision-making.

"Banks can assist their consumers in budgeting and knowing exactly when they have extra to save by offering open banking capabilities and simple-to-build solutions like Moneyhub's Smart Saver API Recipe. Additionally, it will allow them to provide better results for their customers.

Enhancing Pension Assistance

The managing director of Moneyhub Personal Finance Technology, Mark Horwood-James, provided an explanation of how pension companies could use improved technology to assist adults in the UK as they make retirement plans: "Pension and investment providers could be doing more to assist consumers in making better financial decisions, as the public has made abundantly clear." The degree of customer desire for technology is likewise remarkable.

"Open banking and open finance technology, in particular, can be used with apps to improve financial wellness and promote favorable results.

"Consumers can make decisions that can enhance their long-term financial health when they have a comprehensive understanding of their money. In this regard, pension and investment providers might make a significant difference by giving their clients and their companies better prospects.

"The race to deliver customer-centric solutions is accelerating with the UK Government's announcement of the pensions dashboard and new smart data sharing laws (DPDI), along with the ongoing emergence of open finance." And who stays ahead of the curve and who falls behind will become clear in the coming years.