In 2022, the UK’s soaring cost-of-living is reshaping financial goals.
- Research by Lowell highlights a shift in Brits’ financial priorities since 2019.
- The percentage of people prioritising weekly food shopping rose by 21%.
- Comfortably paying bills and achieving financial stability remain top concerns.
- The focus on weddings has decreased, with more emphasis on debt repayment.
In the face of the United Kingdom’s rapid inflation and escalating cost-of-living, British citizens have been compelled to reassess and adjust their financial priorities. Lowell’s research delves into these shifts, comparing current financial goals with those prevalent in 2019. The findings underscore a significant transformation in spending habits and financial planning across the nation.
A notable 21% increase since 2019 shows that over one in five Brits now prioritise being able to comfortably conduct a weekly food shop. This increase reflects inflation’s impact on household budgets, as rising food costs make grocery shopping a major financial consideration for many.
Parallel to this is the concern for comfortably paying bills, identified as a primary financial goal for 26% of the population—up by 15% since 2019. The strain of higher energy costs, with an estimated £800 annual rise per household according to Ofgem, exacerbates this focus.
Achieving financial stability tops the list, experiencing a 10% growth in priority since 2019. This reflects a broader awareness among Brits of the need for secure financial planning amidst economic uncertainties.
The younger generation, especially those aged 16-24, show a marked change in financial priorities with a staggering 69% increase in those aiming to pay off debts. This contrasts with a slight decline among 35-44 year-olds, signaling a shift in debt management strategies post-pandemic.
Meanwhile, weddings, traditionally significant financial undertakings, have become less of a priority. Data reveals a 32% decrease in the emphasis on weddings among 16-24 and 25-34 age groups, aligning with a broader 25% national reduction in prioritising wedding expenses.
John Pears, UK CEO of Lowell, addresses the bleak economic forecast, emphasising the importance of realistic financial goal-setting and proactive debt management. He stresses the necessity of engaging with creditors and exploring available support resources.
The evolving financial priorities of Brits in 2022 highlight the pressing need for adaptable financial strategies amid ongoing economic challenges.
