LV: 26% expect finances to worse within three months

An estimated 26% (13 million) of UK adults expect their finances to worsen over the next three months, according to The LV= Wealth and Wellbeing Monitor.

The report revealed that 36%, or 18 million, adults in the UK, found that their finances are worse then they were three months ago. 

According to LV= 10 million people (20%) said that they have seen their income fall in the past three months; in contrast, 13% outlined that their income had risen over the same period.

More than one in 10 (13%) of respondents have reduced the amount they are saving into a pension; 4% of people who were not retired said they have had to access their pension savings, and 8% revealed that they would now have to retire later due to the financial impact of the pandemic.

The LV= Wealth and Wellbeing Monitor is a quarterly survey of 4,000 UK adults.

Clive Bolton, managing director of savings and retirement at LV=, said: “Figures from the LV= Wealth and Wellbeing Monitor highlight just how difficult life has become for millions of people since the introduction of the second lockdown, and the finances of millions of people have deteriorated markedly since the summer.

“During the summer, loosening of lockdown restrictions led to an increase in consumer spending, a reduction in saving and an increase in spending on socialising.

“However, the second lockdown, increased company failures and redundancies are shaking consumers’ confidence and reshaping their attitudes to savings and spending.

“Many people are reducing their long-term savings into pensions, while some of those aged over 55 have even resorted to drawing money from their pension to make up for reduced incomes or job losses.

“However, the development and introduction of vaccines is terrific news and we would hope to see an uptick in people’s outlook in next quarter’s Wealth and Wellbeing Monitor data as we start to see a return to a more normal way of life.”