25% of UK adults – which totals 13m people – say they expect their finances to worsen over the next three months, according to research from LV=.
The figures are the worst since December 2020 and the insurer says highlight how the confidence of UK consumers is faltering as fears about a resurgence of coronavirus rise.
The LV= Wealth and Wellbeing Monitor - a quarterly survey of 4,000+ UK adults – reveals that 33% (17m) say their finances have deteriorated over the past three months.
Meanwhile, 48% say their total monthly outgoings have increased and 9% (4.7m) that they have decreased, while 20% of UK adults said they amount they are saving has fallen
Clive Bolton, managing director of protection, savings & retirement at LV=, said: “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 life 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 rise 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.”
