Building lasting financial stability isn’t about sudden windfalls or flashy investments—it’s often the result of careful planning, small consistent efforts, and staying focused on long-term goals, says a leading banking expert.
New figures from a YouGov poll conducted for HSBC UK Premier reveal that four-fifths (81%) of people across Britain are actively working toward at least one financial goal. However, despite this optimism, only 21% of respondents believe they are actually on track to reach those goals.
Xian Chan, Head of Premier Wealth at HSBC UK, shared insights on how individuals can nurture their financial wellbeing across each life stage. His advice comes at a time of heightened financial uncertainty, with recent global market events—including President Donald Trump’s announcement of tariffs—causing turbulence in investment markets and disrupting savings plans for many.
Despite market volatility, Mr Chan emphasises that staying invested for the long term tends to iron out short-term fluctuations. “Time in the market is generally more important than timing the market,” he said.
In your 20s: Develop the habit
According to Mr Chan, your 20s are the ideal time to start laying the foundations of financial resilience. “Even if you’re not earning a great deal, the key is consistency,” he said. “Saving a little and often, even small amounts, builds strong financial habits and contributes to a vital emergency buffer.”
He encourages young adults to aim for saving three to six months’ worth of living expenses in an accessible savings account. At the same time, beginning to invest—even modestly—can position individuals well for greater returns in later decades. Setting a mix of short, medium, and long-term goals also encourages financial clarity early on.
In your 30s: Balance family and future
For those entering their 30s, financial responsibilities often increase—whether it’s through taking on a mortgage, starting a family, or managing childcare and household costs. But Mr Chan urges people not to lose sight of long-term objectives.
“Staying future-focused is vital. Regularly reviewing your retirement plan, investments and savings can help you remain on track, even as your budget becomes tighter,” he explained.
He recommends a diversified investment strategy tailored to individual risk appetites, coupled with regular savings for short-term needs. “And don’t forget inflation,” he added. “It can quietly erode cash savings over time.”
In your 40s: Watch for ‘lifestyle inflation’
As incomes tend to rise during one’s 40s, so too can spending—a phenomenon Mr Chan refers to as “lifestyle inflation.” This is when increased earnings are offset by increased expenditure, leaving wealth levels largely unchanged.
“Take a step back and examine your spending habits,” he advised. “Do your growing earnings actually translate to financial growth, or are they being absorbed by unnecessary spending?”
This stage of life often brings multiple financial obligations—from school fees to caring for elderly relatives—so it may also be the time to seek professional financial advice or take advantage of resources your bank may offer.
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In your 50s and beyond: Reassess and realign
For those nearing or entering retirement, Mr Chan stresses the importance of reviewing investment portfolios. “You may have been investing for decades, but do those investments still match your current goals and risk appetite?” he asked.
Redirecting any annual bonuses or extra income towards savings or pensions can also go a long way. “The power of compounded interest is still significant—even in your 50s,” he said.
At this stage, people should consider consulting services like Pension Wise or independent financial advisers to get tailored guidance. “Everyone’s situation is different,” said Mr Chan. “The goal is to ensure your financial future aligns with your aspirations—whether that’s travel, home improvements, or simply peace of mind.”
Ultimately, building wealth and resilience is less about chasing riches and more about making smart, consistent choices over time.
