"Although fewer people are financially struggling compared to 2023, many are still worried about their finances and what the future holds for them."
- David Hynam, CEO of LV=
Of those surveyed (4,000), there was a slight rise in perceived financial resilience compared to 12 months ago, with 5% of adults in the UK more likely to believe that their finances will improve in the next three months. Likewise, savings increased with a 3% rise in pension savings since March 2023.
LV’s Wellness Tracker also rose for the second quarter in a row to +20 (60% comfortable vs 40% struggling) but revealed a shifting financial outlook across different generations. Those aged 60-78 reported the biggest change in financial resilience compared to the previous quarter, rising from 0 to +7. However, this generation as well as those aged between 44-59 years old had the most negative outlook for the future. 50% of those aged 44-59 said they’re financially struggling.
Meanwhile, 40% of adults were worried about the rising prices of day-to-day items, and 45% said they can only just afford day-to-day bills – 10% can’t afford to pay these expenses at all. Half of renters (51%) were worried about the rising prices of day-to-day items, while 38% were concerned about more expensive energy bills.
Notably, parents with children aged 10 or under were more likely to fall behind on utility bills (9% vs 6%) and were twice as likely to miss payments for credit cards or loans (8% vs 4%) or miss mortgage/rent payments (8% vs 3%).
Amongst mortgage holders, one in four were worried about the impact of rising interest rates – this compared to just 10% of the general public. Additionally, one in five investors were concerned about their savings being devalued by inflation.
“As a mutual, our ‘Wealth & Wellbeing’ research is important to us. It helps us to understand what is impacting people across the UK and informs the support and services on offer to our customers,” explained David Hynam, CEO of LV.
“Despite the nation gradually becoming more financially resilient, our data shows that socialising spend has remained stable as many people are prioritising their everyday living costs,” he concluded.
