Kill off zombie subscriptions

These statistics from separate reports paint a worrying picture of many consumers not taking steps to boost their cash flow and failing to think about how much income they will need over the long-term, according to experts.

The “life admin” survey from Lloyds Bank revealed that Scots estimated they could save £334 a year by cancelling unused subscriptions, £367 by reviewing their day-to-day finances, and £353 by re-evaluating their gym membership. On average, Scottish adults are delaying these day-to-day tasks by four to seven months.

Lloyds Bank added that this same reluctance extends to money management, with 33 per cent of Scottish adults admitting to putting off reviewing their day-to-day finances to see where they can make savings by up to three months.

Some 6 per cent said they would hold out for more than a year before amending their pension contributions. When it comes to taking control of their finances for the future, over a fifth of Scottish adults admit to not having any form of pension savings set up.

There are simple actions which would improve people’s engagement levels, according to Lloyds Bank. For example, over a third of Scottish adults say they could cancel unused subscriptions quickly because they can do it on an app.

With 32 per cent of Scottish adults saying they use a banking app every day, Lloyds Bank recently launched its Ready-Made Pension, offering a streamlined solution for those in full-time employment and the self-employed.

Jackie Leiper, head of pensions at Lloyds Bank, says: “It’s human nature to put off important tasks because they seem too complicated or overwhelming. People can be even less likely to engage in making a financial decision when they won’t feel the benefits until decades later, but it’s important to understand the impact that burying your head in the sand can have on your future finances.”

Meanwhile, separate findings from Scottish Widows from its soon-to-be published 2024 Retirement Report, revealed that 30 per cent of adults in Scotland do not know how much income they will need in retirement. And just 31 per cent of Scottish people aged 60 to 64 years old think they are adequately preparing for retirement

Around 45 per cent of future retirees in Scotland expect the State Pension to provide a modest or significant part of their income in retirement.

With it providing this income for 82 per cent of retirees today, Scottish Widows said it is not surprising that over half of those in Scotland are concerned about changes to the State Pension and 16 per cent don’t expect it to be around when they retire.

Peter Glancy, head of pensions policy at Scottish Widows, says: “Expectation versus reality when it comes to retirement income shows how vital it isIt’s vital to help people – especially those who are on the verge of retirement – build a clearer picture of what their own lives could look like when they stop working, and what they can do now to achieve the best outcomes.”