Research from pensions and retirement specialist LV= highlights how 11.6m (22%) UK adults say they are planning to spend more on Christmas this year compared to last.
The LV= Wealth and Wellbeing Monitor* - a quarterly survey of 4,000+ UK adults, shows that rising inflation is the main reason for increased spending while many want to make up for having endured a tough year.
Others will spend the money they have saved because of Covid restrictions and because children and relatives have asked for expensive gifts.
Previous research from the LV= Wealth and Wellbeing Monitor reveals that 4.4m say they have saved over £10,000 because of Covid. Nearly three-quarters (72%) of UK adults surveyed say their household has saved money as a result of reduced spending due to covid restrictions (E.g. reduced commuting costs, childcare costs, eating out costs, etc.).
Those that did save saved on average nearly £5,500 during the past 12 months, while 79% of parents with young children say their household has saved money, and those that saved money saved on average over £8,000 because of reduced childcare costs.
“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.
“While inflation is a growing concern and has caused many to spend more this Christmas, LV=’s research indicates that people just want to let their hair down over the holiday period, forget the tough year we have all endured, enjoy seeing friends and family and spend the money saved during Covid.
“Mass affluent people – those with assets of between £100,000 and £500,000 excluding housing - were particularly likely to be spending Covid savings on a more lavish Christmas as an antidote to a tough year.”
* 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, September 2021 and December 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.