A new survey from Hodge has found that 76% of people in the UK are poised to stop dining out and a further 59% to stop socialising to help manage the rising cost of living.
Hodge’s “Cost of Living” whitepaper features the findings from research which questioned 1,000 people on how they are managing their finances in light of increasing inflation in the UK.
The survey also revealed that four out of five people questioned had no confidence in their finances, with 54% claiming the increasing cost of everyday living was having a detrimental effect on their mental health.
Overall, multiple respondents said the cost-of-living crisis meant they were tightening their belts in a variety of ways, including:
- 37% who said they will cut their TV subscriptions
- 27% who said they will give up their gym membership
- 47% who will not be going on planned short breaks.
Katie Johnson, Hodge’s managing director of savings, said: “With costs rising across the board it is bound to have a knock-on effect on the way that people look at and treat their finances and, in particular, their savings.
“At Hodge, we felt it was important to take a close look at how our customers are dealing with their finances as prices everywhere, from the petrol pumps to the supermarket, continue to increase.
“What our survey found is that people are adapting and, as the old adage goes, are ‘cutting their cloth’ to fit their financial needs at this time. They are curbing spending on non-essentials and concentrating on the basics to make their money go further.
“This also means that people are saving less, however, and are using what they would normally be putting away for a rainy day to manage day to day spending instead.
“But while savings might not be a priority for most at the moment, they are set to be a lifeline that will help many navigate the current economic climate, and are still a really important financial product for people to consider for the future in that sense.
“We will all deal with the rising costs in our own way, but getting the right professional help and advice at times like this can be vital in helping customers come out unscathed and remain financially healthy.
“What this research shows is, as an industry, we still have a lot of work to do to ensure our customers remain financially savvy and confident in their own money management along the way.”
This is the third white paper Hodge has produced for its intermediary partners with the aim of using its research to help and educate brokers and independent financial advisers about pinch points their customers might be facing. Previous themes have included retirement and family money management.