Daily Insurance Industry News
Daily Insurance Industry News
Friday 19th of October 2018
November 24, 2011

One in four use savings to maintain lifestyle

by Gill Montia

Story link: One in four use savings to maintain lifestyle

One in four use savings to maintain lifestyle

The third “Big Money Index” from AXA highlights a shift towards a more pessimistic financial outlook as the year-end approaches.

The study reveals a “deepening gloom” among Britons as they re-tighten their belts, particularly among those nearing or in retirement.

Almost one in four respondents said they were using their savings to maintain their lifestyles in the third quarter of 2011, and only 16% were feeling positive about the next three months.

Such is the sense of gloom that 10% of respondents could not see a time when their earnings will cover their outgoings and 8% have actively avoided opening their bank statements or checking their balance online.

The third quarter of the year also saw a notable shift towards paying down debt, meaning planning for future took a back seat.

Thirty five per cent of those questioned were not saving anything at all for retirement.

However, ownership of most types of financial products rose as consumers sought to protect themselves from potential financial disaster.

For those investing, confusion over the best path to take led to a greater respect for independent financial advice, rather than relying on family and friends.

AXA UK’s director of customer partnerships, Nick Turner, says: “The events of the last few months in the global economy have clearly had an impact on consumer confidence.

“People are once again battening down the hatches and making cutbacks in response to the seemingly unrelenting negative impact on their finances.”

Research for the AXA Big Money Index was carried out by YouGov between 16th and 29th September among 1,985 UK adults.

It also revealed that almost half of respondents believe the euro’s days are numbered.


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