Total 31.8 13.2 45.0 Source: Europe Economics analysis. Table .5: Potential financial impact of improving financial decision-making for those with starting FDMI below 7 by one notch on the FDMI (by starting income) Income Wealth Increase in 30 Combined Group (£ Increase in effect year effect effect thousands), 30 year UK consumption, UK UK as at FCS wealth, % figure), £bn % figure), £bn figure), £bn 2015 50+ 0% 0.6 0% 0.3 0.9 30 - 50 1% 8.6 0% 5.8 14.4 15 - 30 1% 18.6 0% 5.7 24.3 0 - 15 0% 4.0 0% 1.4 5.4 Total 31.8 13.2 45.0 Source: Europe Economics analysis. Table .6: Contributing factors to wealth impact Contribution to wealth Contributing factor Proportion of total wealth gain impact 1.0 3% Property Investment 23.9 75% 5.6 18% Saving 0.5 2% Pension Credit 0.5 2% 0.5 2% Mortgage Source: Europe Economics analysis. The below presents the results of the second, more extreme scenario: .7: Potential financial impact of changing financial capability for those with starting FDMI below 7 to 7 (by starting age) Wealth Increase in Consumption Combined Increase in Age effect 30 year effect effect 30 year Group UK consumption, UK UK wealth, % figure), £bn % figure), £bn figure), £bn 75+ 1% 5.6 0% - 5.6 65 - 74 3% 26.5 0% - 26.5 55 - 64 4% 18.0 0% 3.3 21.3 45 - 54 5% 27.4 0% 8.7 36.1 35 - 44 4% 14.6 0% 10.4 25.0 25 - 34 4% 19.7 0% 10.0 29.8 18 - 24 2% 8.5 0% 3.5 12.0 Total 120.4 36.0 156.4 Source: Europe Economics analysis.
Total 31.8 13.2 45.0 Source: Europe Economics analysis. Table .5: Potential financial impact of improving financial decision-making for those with starting FDMI below 7 by one notch on the FDMI (by starting income) Income Group (£ thousands), as at FCS 2015 Increase in 30 year wealth, % Wealth effect UK figure), £bn Increase in 30 year consumption, % effect UK figure), £bn Combined effect UK figure), £bn 50+ 0% 0.6 0% 0.3 0.9 30 - 50 1% 8.6 0% 5.8 14.4 15 - 30 1% 18.6 0% 5.7 24.3 0 - 15 0% 4.0 0% 1.4 5.4 Total 31.8 13.2 45.0 Source: Europe Economics analysis. Table .6: Contributing factors to wealth impact Contributing factor Contribution to wealth impact Proportion of total wealth gain Property 1.0 3% Investment 23.9 75% Saving 5.6 18% Pension 0.5 2% Credit 0.5 2% Mortgage 0.5 2% Source: Europe Economics analysis. The below presents the results of the second, more extreme scenario: .7: Potential financial impact of changing financial capability for those with starting FDMI below 7 to 7 (by starting age) Age Group Increase in 30 year wealth, % Wealth effect UK figure), £bn Increase in 30 year consumption, % Consumption effect UK figure), £bn Combined effect UK figure), £bn 75+ 1% 5.6 0% - 5.6 65 - 74 3% 26.5 0% - 26.5 55 - 64 4% 18.0 0% 3.3 21.3 45 - 54 5% 27.4 0% 8.7 36.1 35 - 44 4% 14.6 0% 10.4 25.0 25 - 34 4% 19.7 0% 10.0 29.8 18 - 24 2% 8.5 0% 3.5 12.0 Total 120.4 36.0 156.4 Source: Europe Economics analysis.
EE_Study_on_Economic_Impact_of_Improved_Capability_4-Nov-2016_-_Final.docx