Nearly 12m plan to increase christmas spending

  • Nearly half (47%) of those who are spending more say they are doing so because of rising prices
  • But one in three who are spending more want to make up for a tough year and 27% say they will be spending money saved because of Covid restrictions

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 latest research from the LV= Wealth and Wellbeing Monitor reveals:

  • 11.6m (22%) plan to spend more on Christmas this year, compared to last year. This trend is more prevalent among those in London (37%) and those with children under 10 (33%).
  • Among those spending more this year, the top reason is ‘prices have gone up’ (47%). However, inflation is most felt by over 55s (62% of 55-64s and 57% of 65+) and women 52% (vs.44% men)
  • Among those spending more this year, 35% say they are spending more to compensate because ‘it’s been a tough year so really want to enjoy Christmas’
  • Spending Covid savings was the fourth most common reason for spending more this Christmas with 27% saying ‘I saved money during Covid, so have more to spend’
  • Children/relatives asking for expensive gifts was the fifth most common reason, with 13% citing this as a reason for spending more this Christmas, parents with children under 18 are much more likely to say this at 23%.

Clive Bolton, Managing Director of Protection, Savings & Retirement, said: 

“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.”

Notes to Editors

* 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+).

  

David Gwyer
Media Relations Manager – Life & Pensions
07798 796907
Candice South
Press Officer - Life & Pensions
07867 141547

About LV=

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.