Research from protection, investment and retirement specialist LV= highlights how the personal finances of millions of people continue to be affected by the high cost of living.
The LV= Wealth and Wellbeing Research Programme* - a quarterly survey of 4,000 UK adults – reveals that although millions of people are struggling to make ends meet, the proportion of people who think their finances will improve over the next three months is rising. This continues a trend that first appeared in December 2022.
Some 12% (6m) of UK adults say they expect their finances to improve over the next three months - an improvement on the previous quarter when 10% said this. The proportion of people who think their finances will worsen over the next three months has fallen to 40% (21m) from 46% (25m). The figures are the most optimistic since March 2022.
“The LV= Wealth and Wellbeing Research Programme has tracked how millions of people have been squeezed financially over the past 12 months as rising energy bills, interest rates and inflation reduce their spending power.
“People’s finances are in a poor state compared to two years ago, but they have begun to gradually improve ¬- a trend that our research identified in December last year. Although millions of people are facing a financial squeeze, the proportion of people who think their finances will improve is gradually rising while the proportion who think they will worsen is falling.
“Our latest data is the most optimistic we’ve seen since March 2022 and confirms the trend of a gradually improving picture. This appears consistent with the 0.1% growth in GDP in Q1 2023 announced by the ONS. If the cost of living and inflation ease and wages improve, people could begin to feel more optimistic about their finances.”
LV= uses indices to track overall changes to spending, saving and finances. The indices are calculated by taking the percentage who stated a positive change over the past three months (e.g. increase/ better) and subtracting the percentage who stated a negative change over the past three months (e.g. decrease/ worse), to work out the overall impact.
vs. last quarter
|Financial outlook over next three months|
|Finances over past three months|
|Income from work|
|Total monthly outgoings|
|Amount paying into pensions|
|Spend at the supermarket|
|Spend on socialising|
Notes to Editors
LV= is a leading financial mutual and serves over 1.16 million members with a range of financial products. 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. We offer our services direct to consumers, as well as through IFAs.
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.