Jessica BirdThe nation’s financial resilience has showed slow signs of improvement, according to data from LV=’s Wealth and Wellbeing Research Programme.
The quarterly survey of 4,000 adults analysed how personal finances have been affected by the high cost of living, despite signs of improvement in consumer sentiment.
The Wealth and Wellbeing indices track current finances and future outlook showed a slight rise in consumer sentiment compared to a year ago, as adults were 5% more likely to believe that their finances will improve in the next three months.
The index measuring savings also saw an increase, with a 3% rise in pension savings since March 2023.
The LV= Wellness Tracker also rose for the second quarter in a row to +20, but revealed a shifting financial outlook across different generations.
Ranging from +100 to -100, the tracker currently stands at +20 – 60% comfortable versus 40% struggling – up by +5 in the previous year indicating steady improvements as some age groups felt more positive than others.
Those aged 60 to 78 reported the biggest change in financial resilience compared to the last quarter, as their LV= Wellness Tracker score increased from 0 to +7.
Yet this generation, alongside 44 to 59 year olds, had the most negative outlook for the future ahead; half of respondents aged 44 to 59 said they were financially struggling.
Parents with children under 10 were more likely to fall behind on utility bills (9% vs 6%).
They were also twice as likely to miss payments for credit cards or loans (8% vs 4%) or miss mortgage or rent payments (8% vs 3%).
David Hynam, chief executive at LV=, said: “As a mutual, our Wealth and Wellbeing research is important to us.
“It helps us to understand what is impacting people across the UK and informs the support and services on offer to our customers.
“Although our Wealth and Wellbeing Research Programme shows that fewer people are financially struggling compared to 2023, many are still worried about their finances and what the future holds for them.
“Despite the nation gradually becoming more financially resilient, our data shows that socialising spend has remained stable as many people are prioritising their everyday living costs.”
