1 in 2 UK Adults Cannot Afford to Save Money

A report from the Office for National Statistics (ONS) called “Public opinions and social trends, Great Britain: 6 to 17 July 2022” delves into social insights of daily life and events, including the cost of living, location of work, health and well-being from their Opinions and Lifestyle Survey.

Feedback between the 6^th and 17 July 2022 found that:

• 89% of adults confirm their cost of living had risen over the past month and this has continued over the last 9 months.
• 46% of adults who pay energy bills now find it difficult to afford them.
• 21% of adults had to borrow more money or take out more credit in the past month compared with last year.
• 46% of adults will not be able to save any money in the coming year.
• 50% of adults are buying less food compared to just 8% last September.

Comment

With CPI inflation at 9.4% pa and the old, more accurate we believe, RPI inflation at a whopping 11.8% pa for June 2022, it is no surprise that at least half the population is struggling.

This will be particularly hard on younger adults who have only lived in a low interest rate, low inflation, “you can have it all” and “buy what you want, when you want” era.  Those in their 50’s and above experienced hard times in the 70’s and 80’s with high inflation, recession, record unemployment and then high mortgage interest rates of 15% in the late 80’s and early 90’s.  It’s back to make, mend and wait until you can afford something before you buy.

We warned you in our weekly ‘Covid-19’ updates video channel two years ago to prepare for the worst, prepare for inflation, prepare for higher interest rates and save as money as you could to cushion the impact of the inflation hit that was coming.  We hope many of you did.

See Covid-19 Channel: Videos

Save Now:  Recession, inflation and interest rate increases are forcing people not to save but we urge you, even if it is a £5 a week to save as much as you can and invest in markets,  There will be a market recover and savings and investments.