Despite a general increase in financial confidence across the UK, almost a quarter of rural residents remain worried about the cost of household bills, a survey from NFU Mutual reveals.
The research showed that financial confidence within the next 12 months has decreased to 41% from 52% in August 2023, with 24% of respondents still concerned about household bills. Those aged 75 and above are particularly worried, with 35% expressing concerns.
The survey also noted that residents aged between 45 and 54 are feeling the squeeze due to high living costs and the impact on their real income and savings after a year of high inflation.
However, overall confidence has seen a slight rise of 2% in the last six months and has more than trebled since March 2022.
David Nottingham, personal finance expert at NFU Mutual, commented on the findings: “Financial confidence, particularly in the short-term, has grown slightly as customers adjust to the current economic climate.
“While living costs are still putting a strain on household finances, there is clearly cause for optimism as inflation continues to fall, while interest rates are forecast to see a cut by the end of 2024.
“This will undoubtedly begin to provide some welcome respite for mortgage-payers. There is also the expectation that the return on cash for those with savings in the bank will begin to diminish and some may need to explore the potential for higher returns from the stock market.
“This could be one of the factors behind nearly a third of respondents saying they plan to seek financial advice in the coming months, as they consider how to make the most of their money in the coming months and years.”
The survey also found that a third of rural residents plan to seek financial advice within the next six months. Among farmers, 19% are more likely to seek financial advice, compared to less than one in 10 non-farmers.
