LV= Wealth and Wellbeing Research Programme, edition 11

Since June 2020, we have shared our quarterly and longitudinal insights, helping build industry understanding of the issues consumers are facing in regard to their finances and wellbeing. 

Our findings are based on a robust, nationally representative sample of 4,000 UK adults allowing us to have confidence that these reflect the views of UK consumers. We explore a variety of topics including people’s changing finances, their plans for retirement and how the exceptional market turmoil is impacting them. 

In this edition

Edition 11 focuses on how the current economic environment is changing consumer finances, opinions and behaviour. We explored consumers’ concerns about their ability to pay heating bills and mortgages as their finances come under strain. Nearly 42% of people now describe their financial situation as “struggling”, which is the highest we have seen this figure since our study began. Despite this, some of our financial indices have stabilised or improved compared to the previous quarter, hinting at some consumer optimism.

Investment market volatility has led to more people feeling uncomfortable with financial uncertainty, with pension savers feeling anxious about fluctuations in the value of their pension.

Of those surveyed this quarter:

• 42% of UK adults (23m) now describe their financial situation as ‘struggling’
• 57% of parents with a child aged between 0-10 cannot comfortably afford their mortgage payments
• Double the amount of consumers discussed an ESG investment with a financial adviser compared to a year ago (10% vs 5%)
• 67% of ISA investors were interested in a stocks and shares ISA with smoothing