- Less than two thirds (61%) of UK adults aged 18-24 have heard of the term “pension”
- Only three fifths* (57%) of UK adults aged 18-24 are familiar with the financial term “inflation”, while just a quarter (25%) have heard of “contents insurance”
- But 18-24s are most likely to be aware of the phrase “ESG fund”, compared to other age groups
- People who have heard of financial phrases often don’t understand their meanings
- Aviva campaign aims to help customers understand “puzzling” financial matters
Seven in 10 UK adults are puzzled by financial jargon, while three quarters are baffled by the term “the economy”, a new study reveals.
The research also finds those aged under-25 are least likely to feel puzzled by financial jargon, compared to other age groups, with around half (52%) of those aged 18-24 stating this, compared to 69% across all age groups.
However, younger respondents are most likely to find managing money puzzling, with around three fifths of 18-24s admitting this (58%), versus less than a quarter (23%) of those aged 55+.
The survey of 2,000 UK adults has been carried out to support a new campaign from Aviva. It is designed to help customers to better understand financial products and provide them with solutions to meet their needs, now and in the future.
Younger people are less likely to have heard of financial products and terms.
The study may offer an explanation as to why under-25s may be less confused by financial jargon; they are also less likely than other age groups to have heard of certain financial products and terms.
The survey finds, when faced with a list of financial terms, less than two thirds of UK adults (61%) aged 18-24 report they have heard of the term “pension”, compared to 97% of respondents aged 55 and above. Only a quarter of 18-24s are aware of the term “contents insurance”, compared to 92% of those aged 55+, while the phrase “inflation” is known to less than three fifths (57%) of 18-24s.
Awareness of selected financial terms among different age groups
| Financial term / phrase | Proportion of people who have heard of this financial term according to the Aviva study | |||||
|
| All ages | Aged 18-24 | Aged 25-34 | Aged 35-44 | Aged 45-54 | Aged 55+ |
| Pension | 84% | 61% | 67% | 75% | 89% | 97% |
| Life Insurance | 83% | 61% | 67% | 75% | 90% | 96% |
| Interest rate | 81% | 58% | 63% | 72% | 88% | 96% |
| Inflation | 79% | 57% | 63% | 66% | 89% | 93% |
| Contents insurance | 72% | 25% | 52% | 63% | 83% | 92% |
| Equity release | 72% | 32% | 49% | 62% | 83% | 92% |
| Insurance premium | 71% | 37% | 51% | 65% | 79% | 89% |
| Comprehensive cover | 69% | 29% | 45% | 60% | 80% | 90% |
| Annuity | 58% | 17% | 27% | 44% | 69% | 82% |
| Pension consolidation | 43% | 22% | 35% | 38% | 52% | 51% |
| Gilt | 38% | 9% | 17% | 24% | 40% | 59% |
| Income drawdown | 32% | 10% | 14% | 19% | 30% | 52% |
| SIPP | 27% | 9% | 13% | 15% | 30% | 42% |
| Decreasing cover | 23% | 9% | 20% | 24% | 26% | 26% |
| Level cover | 22% | 12% | 17% | 20% | 26% | 25% |
| ESG fund | 9% | 13% | 12% | 8% | 8% | 9% |
| I have not heard of any of these financial terms before today | 2% | 4% | 3% | 3% | - | 1% |
| Don’t know | 2% | 3% | 3% | 3% | 2% | - |
Source: Ipsos UK. Base: 2,379 UK adults 18+, fieldwork conducted using online i:omnibus, 1st – 3rd November 2022.
However, in spite of having heard of certain terms, people aren’t always confident about what they actually mean.
Less than half (43%) of people who have heard the term “gilt” understand its meaning, while two fifths (59%) of those who have heard of an “annuity” know what is meant by the word. Just 61% of people who are aware of an “ESG fund” feel confident of the phrase’s meaning.
Phoebe Barter, Brand Director, Aviva, says: “We understand that financial matters can be puzzling and our research highlights exactly this. It’s easy to stick our heads in the sand and ignore something we find complex and confusing. But we also know that when things are resolved and clear, it’s a huge weight off our minds.
“At Aviva we want to help our customers engage with their finances so they really click into place. Whether people want to make sense of their pension pots or understand how much cover they need for their home or their family, that’s exactly what we’re here to do. We’re here to help solve customers’ concerns, so they can focus on what matters to them and not spend time feeling puzzled.”
Aviva’s latest TV advert can be seen from 26 December 2022.
Ends
Sources
The research was carried out by Ipsos UK on behalf of Aviva. Ipsos UK interviewed a representative quota sample of 2,379 adults aged 18+ in the United Kingdom using its online i:omnibus between 1st and 3rd Nov 2022. The sample obtained is representative of the population with quotas on Age, Gender, Region and Working Status. The data has been weighted to the known offline population proportions for age, working status and social grade within gender, and for government office region and education, to reflect the adult population of the United Kingdom.
* Respondents were shown a list of 16 financial terms and asked to select which ones they had heard of.
Sarah Poulter
UK External Communications
-
Phone
-
+44 (0) 7800 691 569
-
-
Email
Media enquiries
Notes to editors:
- We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
- We help our 19.6 million (as at 31 August 2024) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers.
- In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at at www.aviva.com/sustainability/climate and our sustainability ambition and action at www.aviva.com/sustainability.
- Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2024, total Group assets under management at Aviva Group were £398 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2024 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
- For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
- The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
- You can follow us on:
- X: www.x.com/avivaplc
- LinkedIn: www.linkedin.com/company/aviva-plc
- Instagram: www.instagram.com/avivaplc
- For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
