What can UK financial planners learn from their European counterparts?

Financial health is as essential as physical or mental health.

And just as doctors and therapists play a role in wellbeing, financial planners are indispensable guides in helping clients achieve stability, security, and freedom.

At the European Financial Planning Association’s 25th anniversary conference in Brussels, EFPA launched the insightful Financial Health of Europeans report 2025.

The report offered a sweeping view of how households across 12 European countries perceive, manage, and plan their finances.

EFPA is a European wide professional standards setting body for financial planners, with more than 101,000 certified members, including all Personal Finance Society Diploma and above qualified members.

For UK financial planners, the Financial Health Report findings are both sobering and instructive.

They highlight the persistent gap between the aspiration for financial health and the reality of day-to-day money management.

The findings also show where the UK sits compared to its European peers.

Financial health: valued but elusive

Across Europe, 86 per cent of respondents rated financial health as important or very important, with one in four calling it the most important area of their lives.

Yet only 15 per cent felt financially free to enjoy life fully, and just 20 per cent said they could pursue personal dreams.

The UK mirrors this paradox. Britons place a high value on financial security, but the report shows they struggle with execution.

Only about half of UK respondents felt financially secure in the short or long term, a figure broadly in line with the European average.

However, debt pressures and weak savings habits are more acute in the UK than in many other countries.

UK versus Europe: key comparisons

Debt management: 36 per cent of Europeans hold liabilities such as mortgages or loans. In the UK, debt-related stress is particularly pronounced: nearly half of British respondents reported difficulties repaying debt in the past year, and overdue payments were higher than in Germany, Sweden, or Italy.
Income and expenditure awareness: One of the most striking findings is the inaccuracy with which Europeans estimate their income and spending. The UK stands out for the least accurate income and expenditure estimates, with average errors of nearly £3,900 on income and £3,200 on spending. By contrast, Hungarians were far more precise, with errors closer to £1,000. This lack of financial precision in the UK poses risks of liquidity shortfalls and missed opportunities for saving or investing.
Savings behaviour: While 78 per cent of Europeans save at least occasionally, only 36 per cent do so regularly. In the UK, savings participation is middling — higher than Hungary (65 per cent) but lower than the Czech Republic (86 per cent). Alarmingly, a significant minority of Britons report having no savings at all, leaving them vulnerable to shocks.
Retirement preparedness: Only 41 per cent of Europeans actively prepare financially for retirement, and the UK is no exception. Awareness of pension contributions is limited, and many Britons underestimate the gap between their current savings and future needs. Compared to Germans, who report higher confidence in pension knowledge, UK respondents fall behind.
Attitudes towards money: Across Europe, money is strongly associated with freedom (90 per cent) and security (75 per cent). Britons share these views but also report higher levels of financial stress and household conflict around money than Swedes or Italians.

The report underscores that financial literacy alone is not enough.

Behavioural support, emotional guidance, and practical tools are essential to bridge the gap between knowing and doing.

For UK advisers, this means moving beyond technical advice to address the psychological and behavioural dimensions of money.

My three financial planner takeaways from the report:

Tackle the precision gap: With UK households showing the largest errors in estimating income and spending, advisers can add real value by introducing simple tracking tools. Encourage clients to use budgeting apps, bank alerts, or even low-tech spending diaries. The goal is not perfection but awareness, closing the gap between perception and reality.
Address the emotional side of money: The report highlights how money evokes strong emotions, such as stress, and conflict, but also pride and freedom. Advisers can differentiate themselves by creating space for clients to talk about these feelings. Asking questions such as, “What does financial freedom mean to you?” or “How does money affect your relationships?” can uncover motivations that drive better planning.
Tailor retirement conversations: With only 41 per cent of Europeans actively preparing for retirement, and UK awareness of pension contributions low, advisers must make retirement planning more tangible. Use visual tools, scenario modelling, and metaphor-rich explanations to show the trade-offs between current spending and future security. Highlighting small, consistent contributions can help overcome inertia.

The EFPA report makes clear that financial health is not just about numbers: it is about confidence, control, and the ability to pursue life goals without constant financial stress.