The Momentum Household Financial Wellness Index

Funded by: Momentum UK
Published by: Momentum UK
Publication date: 2016
DOI: 10.13140/RG.2.2.20797.15843 (Main Report)

In 2015, Momentum UK commissioned the Personal Finance Research Centre (PFRC) to develop and construct a UK Index of Financial Wellness. The Index, which replicates the concept of Momentum's successful UNISA SA Household Financial Wellness Index, in a UK context, is designed to paint a picture of individual and household finances across the country.

PFRC's developmental work has led to the design of a complex – but intuitive – Index, which gives an overall score out of 100 representing the average financial wellness of the UK population. Seventy per cent of this score is comprised of a ‘Micro Index’, which reveals the population’s financial situation at an individual and household level, while the remaining 30 per cent is given from a ‘Macro Index’, which shows the overall state of the wider economy.

The Micro Index consists of seven separate ‘domains’, each scored out of 10, which capture differing elements of Financial Wellness. These are calculated from the results of a UK-wide survey of approximately 2,000 individuals which was conducted in late 2015.

The Macro Index, meanwhile, is comprised of three domains, each calculated from the most recent figures for three well-known macro-economic indicators: the unemployment rate, annual change in GDP per capita, and the Gini coefficient of income inequality. Again, each of these is rescaled to give a score out of 10, with higher figures representing greater Financial Wellness, i.e. lower unemployment, faster economic growth and lower inequality.

Momentum Household Financial Wellness Index (Main Report) (PDF, 1,988kB)
Momentum Household Financial Wellness Index - Quantitative Methodology Report (PDF, 1,023kB) 
Momentum Household Financial Wellness Index - Qualitative Report (PDF, 619kB)

Momentum UK Household Financial Wellnesss Index 2016 (Summary) (PDF, 1,547kB)
This is a short summary produced by Momentum, describing the Index and the Financial Wellness of the UK as it stands in 2016

Momentum YourWealth

The YourWealth website provides tools and guides to help people to understand and improve their individual financial wellness, as well as further information about the Momentum Financial Wellness Index, which looks at the UK as a whole.

Momentum YourWealth's Financial Wellness pages [External Link]

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