31m people claim that their finances have worsened over the past three months according to new research from LV=.
The ‘LV= Wealth and Wellbeing Monitor’, a quarterly survey of 4,000 adults, reveals that more than half of people expect their finances to worsen over the next three months.
Additionally, nearly one in 10 adults stated they are struggling a lot financially, as 21m (40%) reported to be worried about money.
Clive Bolton, managing director of protection, savings & retirement at LV=, said: “Millions of people are being squeezed financially as rising energy bills, interest rates and inflation reduce their spending power.
“People are now more pessimistic about their finances than at any time since we started the ‘Wealth and Wellbeing’ research programme in 2020.”
Respondents to the research stated that their total monthly outgoings are rising; and that they are saving less while spending in supermarkets is rising and socialising is falling.
The research also found that 67% of respondents said their total monthly outgoings have increased over the previous three months, as 63% have seen an increase in their supermarket spending.
As well as this, consumer confidence about finances has worsened over the past 12 months, as 9% of adults have described their financial situation as “struggling a lot”.
Bolton added: “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.
“Consumer sentiment had been steadily improving between spring and early autumn 2021 but has deteriorated sharply since the start of the year.
“Fortunately, unemployment remains low and nearly one in five people surveyed (17%) said their income from work has increased over the past three months.
“However, many people are concerned that their pay is not keeping pace with rising prices.
“The result is that a third of people (33%) say they are now saving less, one in 10 are saving less into a pension while over 60% are spending more at the supermarket.”
