A worryingly high number of British families are not financially prepared for the future, a HSBC survey has revealed.

The bank carried out a study on 1,000 UK adults to monitor their levels of financial security.

The majority of those polled said the health of their family was the main constraint on their budget. 88% feel they currently do not have enough money to look after their family’s health.

Those with dependents are spending over half of their disposable income on looking after that person.

A staggering 84% of people do not have an insurance policy to cover the cost of a family member if they were to have a serious accident that would stop them from working.

It’s important to understand both the positive and negative effects that expected and unexpected events can have

Michelle Andrews, head of UK premier and wealth insights, HSBC
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While the bank is stressing the importance of having a rainy day fund and planning ahead, it appears 79% of people do not have a retirement plan.

Michelle Andrews, HSBC's head of UK premier and wealth insights, said: “Long-term financial planning allows people to be in the strongest possible position to support their families and achieve their own aspirations.

“It’s important to understand both the positive and negative effects that expected and unexpected events can have, to ensure we can confidently plan for the future.

“Our staff are ready to speak with HSBC customers to help them understand the range of options available.”

Based on the results HSBC devised an action plan to help people in the UK manage their budget to work towards financial stability.

The plan advises people in the UK to not to give up on their career aspirations and ensure they are included in their financial goals.

The poll shows one in three people sideline their dream jobs to support their family.

Communication appears to be lacking among families when it comes to sorting out finances.

Of the families who answered the survey, 44% have never had a conversation with their loved ones about their long term financial security.

HSBC also suggests Brits should regularly look at how secure they feel with their finances, plan ahead for unexpected events and seek professional advice if ever in doubt. 

While families are struggling to put together a financial forecast, a report by MoneySavingExpert (MSE) shows the current cost of living is rising.

 

The monthly bill tracker created by MSE shows that unavoidable costs such as rent, energy and water have risen by 2.1% in the past year.

 

Guy Anker, managing editor at MoneySavingExpert.com, said: “What we’re seeing here is the biggest impact of inflation – on the pound in your pocket, the household expenses almost everyone has and the things you spend the most money on.”