It feels like the Covid era has been here for decades. In reality it’s been about four months. Long enough to decimate industries, businesses … and families’ finances.
Thanks to a new LifeSearch survey, we can now see and feel the impact Covid has had on the nation’s cashflow, and how the consequences may carry into an uncertain future.
Strap in for depressingly predictable results…
From our nationally representative nationwide poll of over 2,000 UK adults, we've learned that one in four Britons ‘used up’ their financial safety nets in the first half of 2020.
In fact, well over half (57%) of us say that Covid has caused some kind of financial pain: from lost income (17%) to lost savings, and lost jobs (4%). Some 7% say they’re now suffering "financial hardship”.
The survey reveals that one in three younger Brits (18-35) turned to loans and credit cards to bridge financial gaps during Covid. A further 14% of youngsters say they were bailed out by friends and family.
At the other end of the age spectrum, half of all over 55s say they’ve had to dip into their savings to make ends meet during Covid. One in 20 (6%) 35-54-year-olds say they’ve taken on additional paid work to make up the numbers.
We also found that one in ten Brits have sold off personal items to stay afloat - and this rises to one in seven 18-35-year-olds.
Although many of us weren’t financially bulletproof before Covid, the picture has worsened dramatically in just a few months. Pre-Covid, one in eight Brits said they could survive on their savings for at least six months. Today, just one in every ten people could last even that long.
Now, if faced with a sudden cost-of-living increase of just £100, 10% of Brits say they’d be in financial trouble within the month.
And if the household’s key breadwinner suddenly died, one in eight people say they would face immediate financial peril; now that they’ve lost savings and burned up the family safety net.
We know that protection can be a lifeline for families facing uncertainty, now and in future. So take our quiz and size-up your financial safety net. Any holes? Call and let us help.