New research from Legal & General (L&G) has revealed a significant gap between how UK adults manage their finances and the changes in their lives, with many feeling their financial situation does not reflect their current stage of life.
The study found that nearly 18 million people, or 32% of UK adults, say their lives have changed significantly over the past decade, yet their finances have failed to keep pace. More than half, 58%, say their finances feel “younger” than they are, highlighting a disconnect between life stage and money habits.
In addition, 57% worry they may have already missed opportunities to grow their wealth, while only 21% believe their finances accurately reflect their current situation.
The research also shows that almost a third of UK adults have experienced major life changes in the last ten years without adjusting their financial plans.
Among those who went through a significant life event in the past 12 months, 18% admitted they did not update key areas such as pensions, savings, or protection policies.
This lack of action is contributing to the growing mismatch between personal circumstances and financial preparedness.
With the 2025–2026 tax year ending on 5th April 2026, experts say this period offers an important opportunity for individuals to review their finances.
People are encouraged to make use of tax-efficient options, including Individual Savings Accounts (ISAs), which allow up to £20,000 in contributions each year. Pension contributions should also be reviewed, with the annual allowance set at £60,000 or 100% of relevant UK earnings, whichever is lower, for the 2026–2027 tax year.
L&G introduces tools to help assess financial “age”
To help people evaluate whether their finances are keeping up with their lives, L&G has launched an interactive “What is my financial age?” tool. The tool asks users when they last reviewed their finances and assigns a financial age based on their habits.
The company has also introduced a 5-point Financial MOT checklist to guide regular financial reviews:
- Review pension contributions, especially after a pay rise or job change
- Use the full ISA allowance before the deadline
- Check savings to ensure competitive interest rates and updated goals
- Maintain an emergency fund covering 3–6 months of essential expenses
- Update protection policies following major life changes such as moving home or having children
Paula Llewellyn, CEO of DC and Workplace Savings at L&G, said the findings highlight the importance of regular financial reviews. “Whatever stage of life you are in, the end of the tax year is a good moment to pause and check in on your money.
Our research shows life rarely stands still, and your finances should not either. Over the past decade, many of us have seen big changes in our lives, but we have also seen rising living costs and global uncertainty. So even when incomes have gone up, it has not always kept pace with everyday expenses, which can make saving or topping up your pension feel harder.
That is why quick, regular check-ins can really help. They give you a chance to see what has changed and make tweaks so you are not missing out on things like tax allowances or pension growth.
These small steps can make a big difference, helping your money work for the life you are living today and the one you are looking forward to in the future, not the one from your past.”
The findings reflect wider pressures in UK personal finance, as many adults balance changing personal circumstances with ongoing economic uncertainty and rising living costs.
L&G says tools such as its Financial Age assessment and Financial MOT checklist are designed to help bridge the gap between life changes and financial planning, encouraging people to take a more proactive approach to managing their money.