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Millions turn to family and friends for financial help
28/07/2022
RETIREMENT
- 19m say they are struggling financially and 4m turn to family and friends for help
- A quarter of workers have less than £1,000 in savings and families with young children are most likely to have taken on unsecure debt to make ends meet
Research from pensions and retirement specialist LV= highlights how rising in prices are squeezing UK consumers.
The LV= Wealth and Wellbeing Monitor* – a quarterly survey of 4,000+ UK adults – shows that millions of people are worried about their finances, struggling financially and increasingly worried about money.
The LV= Wealth and Wellbeing Monitor asked consumers to describe their financial situation and found:
- Money struggles: 36% (19m) said they were struggling financially – the highest figure since September 2020. Women are more likely to say they are struggling compared to men (41% vs 30%)
- Financial worries continue to increase: 38% (20m) say they are worried about money – and this figure has risen each quarter over the past year
- Utility bills: 7% (4m) say they have fallen behind on or missed utility bill payments in the last 3 months. Parents with young children (14%) are twice as likely to have fallen behind
- Unsecured debt: 3% (2m) have taken on high interest unsecured debt in the last 3 months with the figures rising to 11% for parents of young children
Parents with young children are most affected
The LV= Wealth and Wellbeing Monitor highlights how parents with young children (age 0-10) are most likely to say they have financial worries:
- 14% have fallen behind or missed payments on utility bills in the last 3 months compared to 7% of the general population
- 9% have fallen behind or missed credit card and loan repayments (4% general population)
- 11% have taken out unsecured debt such as payday loans (3% general population)
- 6% have missed mortgage or rent payments (3% of general population)
Money worries mean people are turning to families for help
The research found that increasing numbers of people are turning to family and friends for financial support:
- Savings: A quarter of workers (26% – 8m) say they have less than £1,000 in savings while the figure rises to 33% of women
- Paying the bills: 57% (30m) of adults are worried about being able to pay day-to-day living expenses
- Credit cards and loans: 39% (21m) are worried about paying credit cards and loans
- Family help: 8% (4m) UK adults needed financial support from friends and family in the last 3 months – double the amount in the previous quarter
“The findings of the LV= Wealth and Wellbeing Monitor are alarming and highlight how precarious the finances of millions of people are."
“The research shows that rising prices are squeezing incomes making many financially vulnerable. Millions of people – and particularly those with young children – are struggling and things are likely to get worse as interest rates rise and if the economy goes into recession."
“Consumer sentiment is in many ways worse now than during the dark days of lockdown. In April last year our research showed that lockdown meant large numbers of people were saving money, but now people are responding to increased living costs by saving less and spending less on socialising. Millions say they are even struggling to pay utility bills, have taken out additional loans or are turning to friends and family to make ends meet.”
“The research shows that rising prices are squeezing incomes making many financially vulnerable. Millions of people – and particularly those with young children – are struggling and things are likely to get worse as interest rates rise and if the economy goes into recession."
“Consumer sentiment is in many ways worse now than during the dark days of lockdown. In April last year our research showed that lockdown meant large numbers of people were saving money, but now people are responding to increased living costs by saving less and spending less on socialising. Millions say they are even struggling to pay utility bills, have taken out additional loans or are turning to friends and family to make ends meet.”
Clive BoltonManaging Director of Protection, Savings and Retirement at LV=
Notes
* LV= surveyed 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in June 2022.