UK Leasing

Rising cost of living kills savings

Jonathan Watts-Lay, Director – WEALTH at Work

July 15, 2022

More than two-fifths (42%) of UK adults say the rising cost of living has led to all regular saving being cut or stopped.

A survey* of 2,000 UK adults to examine people’s saving habits. It revealed that the importance of saving is recognized by many, with a third (33%) saying they regularly reduce spending to ensure they increase their savings.

However, nearly half (45%) of UK adults say they would rather save what they have left at the end of the month than take out their savings at the start of the month. As expenses rise with the cost of living, it is not surprising that people have less money available at the end of the month to save.

Half of UK adults (52%) are confident they have enough savings for emergencies, but the survey also found that half (50%) of UK adults know they should save more , not just for emergencies.

Jonathan Watts-Lay, director, WEALTH at work, comments; “It is very worrying that people are forced to reduce or stop saving altogether in order to free up money to pay ever-increasing bills. Many people understand the importance of saving and watch their spending to make sure they can add to their savings, but it seems like it’s something many can’t afford anymore.

He explains; “It’s completely understandable that employees need to cut back on their savings, but it may be better for them to reduce their savings to what they can still afford rather than stop saving money altogether. is a habit, and once stopped, it is very difficult to start again.

Watts-Lay adds; “There are practical steps employees can take to save money they may not have considered yet, to hopefully protect any savings they may have. This includes checking all expenses to find ways to cut costs, such as canceling unused subscriptions or memberships, finding better deals on TV, broadband and mobile providers, and change of brand in their usual store. Rising energy costs are a big concern, so things like avoiding clothes dryers, using smart heating, using more efficient light bulbs, and finding cheaper ways to cook, like using a slow cooker or crock pot. a microwave oven, can all help. It’s always a good idea to look for discount coupons online for any purchase, and it’s also a great time to remind staff of the cost savings available as part of their benefits package, for example discounts on parking, shopping, car rental, medical care and insurance. ”

He comments; “As part of an overall wellness objective, many employers are now offering support to their workforce. This includes providing financial education workshops, one-on-one advice or coaching, and digital tools and helplines. This can help employees build financial resilience now and for the future, so they are better equipped to withstand any financial shock.

* WEALTH at work