New research from St. James’s Place1 (SJP) reveals the nation’s lack of preparation towards their future financial affairs and passing down their digital legacy, as over two fifths (43%) of Brits – 22.9 million people – admit they have not shared all details of their financial accounts with someone they trust.
- Over two fifths (43%) haven’t shared details of all financial accounts they have with anybody else
- A third of people (33%) who haven’t done so, didn’t realise they need to brief anyone on this, in the event of their death or incapacitation
- Nearly four in ten (39%) Brits rely on memory to remember their online passwords
- One in ten (10%) change their passwords so regularly that they say it’s too much work keeping legacy plans up to date
Brits overlook digital life when legacy planning
Despite Brits spending nearly a quarter of their day online2,, SJP’s research found that people’s digital life is often overlooked when thinking about legacy planning. Reasons why Brits haven’t shared details of the financial accounts they hold include:
- thinking they didn’t need to brief anyone on this (33%)
- not wanting to share this information (19%)
- thinking they don’t need to share these details under any circumstances (16%)
- planning on briefing someone but haven’t gotten round to it yet (14%)
- not knowing where to start (8%)
Yet, as more financial products and services are being hosted online with less of a paper trail, the need to share details with a trusted individual who may need to access these details e.g., in the event of death or incapacitation, is becoming increasingly important.
Password maintenance hindering digital legacy planning
Interestingly, robust digital hygiene is one of the reasons why people are holding off addressing their digital legacy. One in ten (10%) people change their passwords so regularly that they say it’s too much work keeping legacy plans up to date.
The research also found that a significant number of people mentally keep track of their passwords and as such have no physical or digital record of them. Two fifths (39%) rely on memory to keep track of online passwords.
Personal experience prompting people to consider their digital legacy
For many, personal experiences have prompted them to share details of their financial accounts with a trusted person, which they otherwise may not have considered doing. Nearly one in ten (9%) did so after experiencing a personal loss, while 7% have a medical condition that drove them to share their information.
In addition, a third (32%) have shared their details to ensure their loved ones are as prepared as possible in the event of their death.
Eddie Grant, Director at St. James’s Place comments: “Our lives have been impacted by the rise of digital technology, and what was once done physically is now being done online, including our financial affairs. There are a multitude of benefits that this brings, with the added convenience and speed to access our finances and manage our money. But with this comes a significantly smaller paper trail and as a result may leave loved ones struggling to search for details to these accounts, some of which they may not even know exist. This can be especially problematic in the event of death or incapacitation.
“We don’t often think about legacy planning unless prompted by a personal experience, as our research has shown, but it is important that people consider their digital legacy as part of their financial planning to ensure that our loved ones have all the information that they may need. There can be lots to think about and it can be a difficult and uncomfortable topic, so it’s worth speaking to a financial adviser who can guide you through the process of passing down your digital legacy in a safe way, at your own pace.”
Eddie Grant’s top tips on how people can prepare their financial affairs and safely pass down their digital legacy:
- Do the basics – ensure you have a will, and that it’s up-to-date. The purpose a will is to discuss your wishes and give clear direction to your trusted executors and reduce any potential disputes.
- Get your papers in order – track down and keep all your financial documentation in a designated place. Tell your loved ones where they can find it, it in case should they need to access this information.
- Don’t be afraid of having difficult conversations – together you can achieve much more but families often avoid discussing finances. Make sure to have an open and honest conversation to express how you want your wealth to be shared in the event of your death or incapacitation.
- Factor your digital finances into your legacy planning – in a paperless world we are increasingly reliant on our digital life, from managing our finances to our social media presence. Ensure that a list of digital accounts e.g., bank accounts and social media platforms are mentioned within legacy plans. Referencing all of your accounts allows your next of kin to help track and close down all online accounts.
- Think about appointing a power of attorney – it is also worth establishing a certified lasting power of attorney. This gives someone you trust the authority to make decisions on your behalf if you lose the mental capacity to do so yourself. This can reduce anxiety for everyone involved at an already vulnerable time.
- Plan for the unexpected – while having a plan is important, life rarely goes to plan so be prepared for the unexpected and shift your legacy plans accordingly.
- Seek advice – take advice from a trusted advisor and introduce them to your loved ones so that they know who to talk to in your absence.
Notes to Editors
Case Studies are available upon request
(1) Research conducted for St. James’s Place by Opinium, between 23rd August – 4th September 2023 among 4,000 UK Adults. All results are weighted to nationally representative criteria.
(2) Statista data on the average time spent using media in the UK in Q3 2022 – During Q3 2022, internet users in the UK spent an average of five hours and 47 minutes per day accessing the internet via any device.