Research from pensions and retirement specialist LV= highlights how in September 2021 20% (10.7m) UK adults said they expect their finances to worsen over the next three months - but the figures remain much better than the lowpoint of December 2020 when 26% (13.7m) expected their finances to worsen.
“With lockdown restrictions removed, the LV= Wealth and Wellbeing Monitor shows although consumer sentiment has deteriorated over the previous three months it remains much improved compared to the low point at the end of last year. We are in a period of adjustment as life slowly begins to return to normal after Covid and the reality of living in this new environment is beginning to bite.”
LV= uses indices to track overall changes to spending, saving and finances. The indices are calculated by: subtracting the % who stated a negative change over the past three months (e.g. decrease/ worse) from the % who stated a positive change over the past three months (e.g. increase/ better), to work out the overall impact.
LV= Wealth & Wellbeing Indices |
Jun-20 |
Sep-20 |
Dec-20 |
Mar- 21 |
Jun- 21 |
Sep-21 |
Change QonQ |
How finances have changed in last 3 months |
-18 |
-18 |
-25 |
-9 |
-8 |
-11 |
-2 |
How finances might look 3 months from now | -6 | -8 | -14 | -2 | -1 | -5 | -5 |
Total monthly outgoings |
-9 |
2 |
-16 |
-11 |
14 |
26 |
12 |
Income from work |
-11 |
-10 |
-7 |
1 |
6 |
8 |
2 |
Amount saving |
8 |
1 |
-1 |
10 |
2 |
-1 |
-3 |
Amount saving into pensions |
1 |
0 |
-4 |
2 |
3 |
4 |
1 |
Spend at the supermarket |
27 |
21 |
13 |
18 |
16 |
26 |
10 |
Spend on socialising |
-53 |
-37 |
-52 |
-47 |
-9 |
6 |
15 |
The above data shows that there have been significant changes to some indices between June and September 2021.
“The Covid-19 pandemic has been incredibly difficult for the nation and had a huge impact on the lives, personal finances and mental health of millions of people.
“The success of the vaccine programme, fall in death rates and easing of lockdown restrictions lifted spirits over summer and consumers are more optimistic than in the dark days of lockdown.
“We are living through a period of reassessment and adjustment as life begins to return to normal. As the threat from Covid begins to recede, people say they are spending more on socialising. Rather than worrying overwhelmingly about Covid and the effects of lockdown, people’s concerns are switching to more non-pandemic issues such as rising prices and how inflation is eroding their savings.”
* LV= surveyed 4,000+ nationally representative UK adults via an online omnibus conducted by Opinium in June 2020, September 2020, December 2020, March 2021, June 2021 and September 2021.
UK population stats from ONS. Total UK adult population is 52.7m UK adults (aged 18+).
LV= is a leading retirement and protection specialist. When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products.
LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited (LVFS) and trading styles of the LV= Group of Companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF. Phone: 01202 292333.