Although we can never rely on the British weather providing the goods, there does seem to be a growing optimism that this will turn out to be a Great British summer. Many of us have booked staycations and there is a full programme of sporting events, including Wimbledon, the Olympics, British Open, test cricket and the British Grand Prix. For music lovers, there is a welcome return to festivals and The Proms.
Financial confidence on the rise
Recent weeks have also witnessed a notable rise in financial optimism amongst UK consumers, buoyed by the continuing success of the NHS vaccination programme, though variants of concern have cast a shadow. While some people have seen their jobs and finances severely damaged by the pandemic, the labour market has remained remarkably resilient with the help of the furlough scheme and there are clear signs of a potentially strong economic rebound on the horizon.
Many people have witnessed a substantial reduction in their outgoings since the start of the pandemic, with spending on childcare, commuting, and entertainment falling considerably for the typical household. As a result, a significant number of consumers are sitting on relatively large amounts of money, and while some are likely to continue saving, others will undoubtedly be looking to make up for lost time, by increasing spending on shopping trips, eating out and holidays.
The age difference
Unsurprisingly, the experiences and challenges faced by younger and older members of society have differed greatly during the pandemic. While the health crisis certainly put the over-80s most at risk, the financial fallout has hit the younger generation the hardest. For instance, research1 shows 18 to 24-year-olds are more likely to say they are struggling financially and to express concerns about money. In contrast, those in retirement are the most likely to feel financially secure.
Your financial wellbeing
Whatever impact the pandemic has had on your finances, we are here to help. We can help keep your financial affairs in good order, giving you even more time to enjoy the Great British summer!
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.