Real Life Advice Report 2025: Chapter 3 – The purpose behind financial planning

For many people, saving and investing involves making tough decisions and compromises. Not least in an increasingly challenging economic environment.

But having clearly defined financial goals and timelines can make a real difference when it comes to staying the course.

Chapter three of this year’s Real Life Advice Report explores the role of purpose in motivating people to plan for their financial future, and the role of advice in achieving goals.

The reasons why people save

Unsurprisingly, a large proportion of people are thinking about the long term, with retirement front of mind for 43% of savers.

In contrast, a third (31%) of savers are putting money away to travel, while a fifth (19%) said their goal was to save to pay for later-life care (19%). Around 13% of those surveyed said their goal was to save for a deposit on a home.

As might be expected, saving goals differ across different generations. Younger adults are more focused on shorter-term milestones such as buying a home and starting a family, while older generations are more inclined to save on a regular basis.

Staying on track – on purpose

Nearly nine in ten (87%) savers say working towards a specific goal acts as a major motivator. And two in three (63%) believe it has helped them build stronger saving and investing habits.

But what fuels motivation is rarely purely financial, but instead often the purpose behind the goal. For example, those saving for a house deposit may be motivated by the dream of a family space to grow and make lasting memories.

Similarly, saving for long-term care is often less about future costs and more about preserving independence and quality time with loved ones.

When people turn these dreams into tangible, structured plans, real benefits can emerge. The report highlights those with a strong financial plan are nearly twice as likely to be on track with their savings and investment targets compared to those without a plan.

Claire Trott, Head of Advice at St. James’s Place, believes that purpose is “what truly makes the difference”.

“Those who save or invest with clear goals feel more motivated, more confident, and more in control of their finances, with each goal giving a reason to keep moving forward,” Trott says. “It’s also true that when your goals mean something to you, you are more motivated to reach them.”

Mind the gap

Despite the benefits of having clear objectives, only four in ten (42%) people have an overall financial plan. A third of people (32%) lack one with clear goals or timelines. 
Only a fifth (22%) are saving towards a specific goal.

Yet the figures are stark. Nearly eight in ten (78%) of those with a structured financial plan say they are either on track or ahead of their expectations. In contrast, fewer than half (45%) of those without a defined plan can say the same.

More than a third of people without a plan are falling behind on their expectations. This compares to just one in five (19%) of those with clear financial plans and fewer than one in 10 (9%) of those receiving ongoing financial advice.

The report shows that men are slightly more likely than women to have a financial plan – something which might reflect a gender gap in financial confidence. Meanwhile, the younger generation are more likely to plan than their older counterparts. Close to half (48%) of younger adults aged 18-34 have a defined plan, compared to 39% among the over-55s.

The barriers to planning

There are several reasons why people say they don’t have a clear financial plan in place. For some, the obstacle is financial. A third (32%) of those without a plan believe they do not earn enough to warrant putting one in place.

But for almost two fifths (37%), the barriers are psychological or practical. 15% of those surveyed said the idea of a plan felt too complicated or overwhelming. 12% did not believe they needed one at this stage of their life. A further 10% said they didn’t like thinking about money.  

Teamwork makes the dream work

The research shows that nearly half of UK adults (47%) find saving and investing goals easier when shared with a partner or family member, and a similar proportion (48%) say they are more motivated to continue.

Sharing a goal is particularly useful for young adults. Of those in the 18-34 age range, 64% said sharing goals helps them stay on track. This number falls to 51% for 35-54-year-olds, and to 31% for the over-55s.

“It is clear working together with a partner, family member or friend significantly strengthens financial resolve,” Trott adds.

The role of advice

The report highlights that while clear goals can help people focus, professional advice has a role to play in providing the structure and discipline to achieve them. 

95% of people receiving ongoing financial advice said it helps them reach and stay on track with their goals. Meanwhile, 85% of advised individuals said their spending, saving and investing were aligned with their life goals. This compares to 60% of those who don’t receive advice.

Those receiving ongoing financial advice were also more than twice as likely to have a comprehensive financial plan in place with clear timelines and life goals.

While saving and investing in the current environment can be challenging, setting definite financial goals, working with friends or family and taking ongoing financial advice could all help support people to achieve their financial aims.

Background

¹Opinium surveyed 8,000 UK adults nationwide between 22nd July and 5th August 2025. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population. Within this poll, the relevant weighted sub-samples were:

• Men, women, other gender, 18-34 (2,211 people), 35-54 (2,654 people), 55+ (3,135 people), Scotland, Northern Ireland, North East, North West, Yorkshire and Humberside, East Midlands, West Midlands, Wales, East of England, London, South East, South West, working, self-employed, student, retired, unemployed, other not working.

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