About the HL Savings and Resilience comparison tool
The ultimate aim of the comparison tool is to help people improve their resilience – something HL has been doing for over 40 years.
Powered by the research which has gone into the Barometer, it allows users to identify people in the same boat as them – to understand their strengths and potential weaknesses. We aim to build on the functionality of this tool over time.
We’ve also built 5 to Thrive, offering educational support based around these five pillars, so people can then take steps to improve their resilience. https://www.hl.co.uk/features/5-to-thrive
Highlights from the first report
- Resilience has risen to 57.7 out of 100 in the past 12 months, although the picture is strikingly uneven.
- By the end of 2022, we expect it to fall back to 56.2, as households succumb to The Big Squeeze.
- Over 15% of those on lower incomes are already behind on their bills or (non-mortgage) debts – more than four times the national average.
- A third of the UK doesn’t have access to savings that would cover at least three months’ worth of essential expenditure.
- Less than 40% of working age households are on track for a pension income of £26,000 – the current average.
- Just 22.3% of self-employed people have saved enough towards their pension for their time of life.
- Even among high income families, a significant number aren’t on track for pension savings, given their time of life, and almost half don’t have enough life cover to protect their families.
We will be releasing more detailed findings over the coming weeks.
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown:
“The Big Squeeze could crush half of the breathing space we built during the pandemic, with higher inflation, falling real wages, rising taxes and interest rate hikes putting a major dent in our financial resilience. For those who struggled through the pandemic, this is the last thing they need.
The HL Savings and Resilience Barometer revealed that while our overall resilience increased during the pandemic, there was a world of difference in the experiences of those whose outgoings fell, who were able to save, and those who lost income.
Those on lower incomes, younger people, and renters, all faced major challenges to keep their head above water. Already 15% of people on lower incomes have fallen behind on bills or debt repayments, so with those bills rocketing and interest on their debt rising, the Big Squeeze could pull them under.
However, it’s not just these vulnerable groups with worrying gaps in their finances. The barometer delves into how every group measures up against the five pillars of financial resilience, and produces some unexpected findings.
So, for example, it identifies that even among high income families, a surprising number don’t have enough rainy day savings or aren’t on track for pension savings for their time of life. Meanwhile almost half don’t have enough life cover to protect their families. They’re also exposed to variable rate borrowing, which could leave them vulnerable at a time of rate rises.”
