UK adults are starting to feel more positive about their financial future, according to the latest LV= Wealth and Wellbeing Research Programme.
The quarterly survey of 4,000 UK adults has revealed that the number of people who think their finances will continue to worsen is starting to fall.
The LV= Wellness Tracker, a metric examining the financial wellbeing of UK adults, currently stands at +19 up by +4 since December 2022 indicating that the nation’s view of financial resilience is improving.
Ranging from -100 to +100, the LV= Wellness Tracker produces a single measure of the nation’s financial resilience over time by comparing the number of people who are financially ‘comfortable’ to those who are ‘struggling.’ Overall, 59% of respondents described their situation as comfortable, while 41% said they were struggling.
Despite the elements of positivity, the latest LV= data shows some clear generational differences in in how UK adults are adapting to financial pressures and how optimistic they are feeling. 22% of UK adults aged 18-34 expect their finances to improve in the next three months, yet LV= said its figures suggest this group is in a more precarious financial position than older people.
Despite the optimism shown by younger people about improving finances, Generation Z respondents (aged 18-26) were twice as likely to miss payments on credit cards and loans compared to the nation as a whole (8% vs 4%), as well as mortgage or rent (8% vs 3%) and utility bills (8% vs 5%).
Millennials (aged 27-42) are twice as likely to have received a final demand letter (6% vs 3%) and the most likely group to have used a pawn broker in the past three months (5% vs 2%).
Respondents aged 35-54 felt more financially resilient than the last quarter, as their Wellness Tracker score increased by +6.
Overall, a quarter (26%) of adults have seen an increase in costs but say they have not been impacted by the rises, this number grows to 47% for those aged over 78.
Compared to UK workers, retirees generally reported feeling more financially comfortable, over a third (37%) were able to comfortably pay off their credit card or loans debts. Despite this, their Wellness Tracker score fell by -2 this quarter.
David Hynam, LV= chief executive, said: “The LV= Wealth and Wellbeing Research Programme tracks the financial confidence of UK adults and our latest data shows a slight rise in sentiment as inflation has slowed.
“Millennials and Generation Z are more negatively impacted and are more likely to need financial support.
“The LV= Wellness Tracker has risen slightly, showing that positive sentiment does not always match financial situations. While a fifth of 18-34 year olds expect to see their finances improve in the next three months, some young people are experiencing high levels of unsecured debt. The green shoots of growth are there, but there is still work to be done to ensure everyone in our society has the opportunity to feel financially confident.”