New research from ICMIF member LV= says 22 million British adults saw their finances deteriorate in the three months to September despite signs financial resilience is stabilising. This is according to the latest findings of the Wealth and Wellbeing Research Programme at LV=.
Findings from the Programme, a survey of 4,000 UK adults, shows that rising supermarket costs and other bills are preventing people from saving for the future.
Key findings of the research include:
- Four in ten people continue to report feeling worried about increased food and utility costs
- Less than half (49%) of the working age population are comfortably able to afford to pay their bills
- Almost three quarters (72%) of 18 to 34-year-olds currently hold non-mortgage debt
- Over a quarter (27%) of parents are intending to spend less on Christmas this year, as continuing financial pressure force families to make difficult choices.
By contrast, two-thirds of retirees report being able to comfortably afford their living costs.
LV’s Wellness Tracker, which measures financial resilience by comparing the number of people who are financially comfortable with those who are struggling, has only improved slightly from an all-time low of +15 in December 2022, to +17 in June.
LV= says this latest research is clear evidence that ongoing cost pressures are taking a toll for people in the UK.
LV= Chief Executive David Hynam said: “As a mutual, we believe we have a responsibility to our members, financial advisers and customers to conduct research that helps us understand the public’s hopes and concerns. Additionally, as a responsible financial institution, we share our research openly so it can inform public discourse and support relevant policy making.”
The research also highlighted gaps in financial knowledge for certain groups at key life stages. LV= says it is working to make a difference by highlighting its online resources for financial advisers and consumers. The mutual is keen to understand why this is happening and see if some problems could have been avoided if people had better awareness of options like protection.
Data from the latest edition of this quarterly report also reveals evidence of a financial gender imbalance – a topic that David Hynam says is important to him. Findings show the cost of living crisis appears to have a disproportionate impact on women. LV= data also showed a potential lack of knowledge that may be affecting women’s access to financial products and LV= says it is committed to finding out more.
Download the report here.
