"We’d like to see MAPS working with the FCA and with financial services firms to agree how best to give people the help they need, to turn this strategic vision into reality."
The body brings together the services previously delivered by the Money Advice Service, the Pensions Advisory Service and Pension Wise.
Its strategy sets out five 'agendas for change' and goals to be achieved by 2030:
• Financial Foundations: 6.8 million children and young people getting a meaningful financial education - an increase of 2 million from 2019;
• Nation of savers: 16.7 million working age people who are struggling and squeezed saving regularly - an increase of 2 million;
• Credit counts: 2 million fewer people often using credit to pay for food or bills;
• Better debt advice: 2 million more people getting the debt advice they need - currently only 32% of those who need debt advice access it;
• Future focus: 28.6 million people understanding enough to plan for their later lives, and during them - an increase of 5 million.
The strategy will also examine factors which can make people particularly susceptible to financial detriment, such as mental health conditions and gender.
Over the first half of 2020, MaPS will work with leaders and experts from across the public, private and voluntary sectors to set out clear delivery plans to achieve the five goals, with specific plans for England, Scotland, Wales and Northern Ireland.
Following this phase, MaPS will develop its own corporate strategy which will define how the organisation will activate the UK Strategy and deliver on essential money and pensions guidance and services.
Caroline Siarkiewicz, acting chief executive of the Money and Pensions Service, said: “Financial wellbeing underpins personal health and happiness but it doesn’t happen by chance. We’re launching a strategy for entire lifetimes, aiming to expand financial education for children while ensuring everyone is equipped to plan for and enjoy their retirement. Key initiatives include increasing the availability of affordable credit, more payroll savings products and an expansion of free debt advice for when people are in crisis.
“The Money and Pensions Service will be the catalyst for a financial wellbeing movement, transforming how people engage with their money and pensions. We have a decade to make a difference and we cannot achieve change alone, so we will be connecting companies, charities and other organisations which share our vision, to make this happen.”
Sir Hector Sants, chair of the Money and Pensions Service, commented: “The importance of financial wellbeing is under-appreciated. It is not only about financial capability but also feeling secure, in control, confident and empowered in relation to money. It is central to personal wellbeing and thus to living a contented life.
“The UK Strategy for Financial Wellbeing will only be successful for individuals if it is supported by the right products, regulation, services and corporate culture. Achieving the strategy will thus require the support and, in many cases, action by both the private and the public sector.”
Tom McPhail head of policy at Hargreaves Lansdown, added: "There are five strategies that apply to virtually everyone, which will lead them to a better financial future: Paying off high cost credit; making sure they’ve got an emergency cash reserve; insuring to protect their family; saving for retirement; and investing for the long term. The new MAPS strategy captures many of these principles, but there’s a particular focus on debt with two of their five pillars focusing on this key social issue.
"There’s a particular challenge with MAPS’ pillar of ‘Future Focus’ which concerns saving and investing for the long term. They need responsible financial firms to help deliver their strategy, however the current regulatory framework doesn’t allow firms to give people the guidance and help they need if they are to achieve good financial outcomes. We’d like to see MAPS working with the FCA and with financial services firms to agree how best to give people the help they need, to turn this strategic vision into reality.
"We welcome their pillar of Financial Foundation, focused on young people, which will help lay the groundwork for a more financially literate and resilient society in the long term. Individuals can be helped through behavioural nudges and good financial frameworks, but we also need to work towards a future where people are empowered to manage their own savings and investments with confidence."
