LV=’s latest quarterly Wealth and Wellbeing Monitor has revealed that millions of people expect their finances to worsen over the next three months, total monthly outgoings are rising, people are saving less while spending in supermarkets is rising and socialising is falling.
The June 2022 figures are the worst they’ve been since June 2020 when LV= started surveying consumers during the pandemic. It shows how the confidence of UK consumers is falling sharply as millions feel the effects of rising prices.
The LV= Wealth and Wellbeing Monitor has found:
- Worsening financial outlook: 43% (23m) expect their finances to worsen over the next three months
- Deterioration in finances over past three months: 53% (28m) say their finances have deteriorated over the past three months.
- Outgoings increase: 61% (32m) say their total monthly outgoings have increased over the previous three months
- Saving falls: 30% (16m) said the amount they are saving has fallen in the last three months
- Supermarket spend is up, socialising down: 58% (31m) have seen an increase in their supermarket spending, while 31% (16m) are spending less money on socialising
- 36% (19m) of UK adults have described their financial situation as “struggling” and this has increased each quarter over the past year
- 38% are worried about money, rising by 10% since June 2021
- People aged 18-34 (46%) were the age group most worried about money. Parents of young children (aged 0-10) were also very worried about money (44%).
Clive Bolton, managing director of protection, savings & retirement, said: “The results of the latest LV= Wealth and Wellbeing Monitor highlight how the finances of millions of people are being squeezed by the large rise in the cost of living. The indices for savings, financial outlook and outgoings are the worst recorded since we started surveying consumers during the coronavirus pandemic, and worse than in the dark days of covid.
“Consumer sentiment had been steadily improving between spring and early autumn 2021 but the sharp rise in the cost of living has dented consumers’ confidence. Millions of people say they are struggling financially and standards of living are falling across the country.
“Rising energy prices are becoming a significant problem for many people, and many families with young children and low income households are struggling.”