Less than a quarter (23%) of UK employees have made a current will, research shows.
This figure rises to almost half (44%) of those approaching retirement (aged 55+) and is higher in men than women (26% vs 20%), according to the Financial Wellbeing Index from Close Brothers.
The research suggests people with a current will are more positive about their finances; 65% are happy with the state of their finances as opposed to around half of those without (47%).
Only 9% of those with a will do not have funds to pay for an emergency, much fewer than the quarter (26%) of those without a will.
Consequently, those with a current will are nearly twice as likely to feel financially prepared for unexpected financial costs or a significant reduction in their income as those without (59% vs 35%), the research found.
However, despite taking the steps to plan for after their death, almost half (44%) of those with a current will admitted to not having a financial plan in place to help them achieve their financial goals while still alive.
A quarter (26%) also admitted they don’t budget their finances, only one in six (16%) have purchased a critical illness product and one in 10 (11%) an income protection product.
A mere 4% of employees have registered a lasting Power of Attorney.
Jeanette Makings, head of financial education at Close Brothers, said arranging a will is just as vital as ensuring you have an emergency savings fund to pay for unexpected costs, or life assurance where relevant.
“Some people may have some elements of protection as part of their workplace benefits, such as death in service benefits. But on the whole, protection is often overlooked as an area of personal finance,” she stated.