Around 25 per cent of UK adults expect their finances to worsen in the next three months, according to LV= research.
The LV= Wealth and Wellbeing Monitor quarterly survey of over 4,000 UK adults revealed that 33 per cent said their finances have deteriorated in the last three months. The survey also found that 48 per cent said their total monthly outgoings have increased, 9 per cent said they have decreased, while 20 per cent of those polled said their savings have fallen.
LV= managing director of protection, savings and retirement Clive Bolton says: “The Covid-19 pandemic has been incredibly difficult for the nation and had a huge impact on the lives, personal finances and mental health of millions of people.
“Consumer sentiment had been steadily improving between spring and early autumn 2021 as the success of the vaccine programme, fall in death rates and easing of lockdown restrictions allowed to live to begin to return to normal. However, the appearance of the Omicron variant and rising infection levels has knocked confidence back to levels last seen in the dark days of December 2020.
“Inflation is becoming more of a problem for many people who say their outgoings have increased, particularly those who are retired. Rising prices coupled with poor returns on deposit accounts will dismay pensioners whose only or main source of retirement income is the state pension. Many will be financially squeezed as the cost of essential items like home heating rises while returns from savings accounts – which typically form the bulk of retired people’s savings – remain low. However, the economy remains relatively strong and wages are rising for those people whose jobs are unaffected by lockdowns.
“Millions of people have endured a difficult Christmas and New Year but hopefully the current booster vaccine programme will be successful and confidence will return as the virus comes under control.”
