Aegon introduces a tool for the nation’s financial wellbeing

Pension and investment company Aegon has launched a financial well-being tool designed to help 45 million adults in the UK assess and make improvements on their personal financial well-being.

The new tool is based on Aegon’s current Financial Wellbeing Index, which analyzes people’s financial health and the influence of mindset on financial wellbeing and decision-making in financial planning.

The report found that more than 19 million people (36%) in the UK are struggling with their financial well-being and that only 16% of the population (around 8.6 million people) combine healthy finances and a positive attitude to money.

About 12%, or nearly 6.5 million people, did poorly on financial wellbeing and financial attitude.

With this in mind, Aegon believes that 5 in 6 of the population, or 45 million people, could take steps to improve their financial well-being. That view inspired the introduction of the tool to everyone, not just Aegon customers, the company says.

Aegon’s methodology places equal weight on monetary factors such as income level, budgetary ability, affordability of debt, and attitude factors such as people’s willingness or ability to imagine their future selves, draw up a financial plan, or think carefully about what makes them happy. The company says it’s the mindset that often has the greatest room for improvement.

The animated tool asks 10 questions from the larger Aegon Financial Wellbeing survey.

The tool uses 5 questions about money and 5 questions about mindset to draw conclusions about the person’s financial wealth.

Blocks of money

Mental blocks

  • Income level
  • Fund for rainy days
  • Manageable debt
  • Smart long-term savings
  • Value of other assets including property
  • Joy and goal
  • A solid picture of our future selves
  • Clever social comparisons
  • A long term plan
  • Financial education

Once the person has answered each of the questions, a score is displayed, which is compared to an average score, showing their current financial strengths and areas for improvement, and outlining the steps they need to consider to improve.

Aegon will encourage employers to use the tool in workplaces with employees to improve employee financial well-being.

The tool is available here:

Steven Cameron, Aegon’s Director of Pensions, said, “We have found that the greatest improvement in financial well-being for most people is to redefine the way they think about money – their ‘mindset’. It is not always possible to change your income or savings quickly, but if you think about what kind of future you are working towards and what steps you need to take, or make more realistic social comparisons, you can make big steps towards one better relationship to your money. “

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