Although the weather may have a different opinion at times, there does seem to be a growing sense that 2021 will prove to be a Great British summer. Staycations are all booked; a packed sporting schedule featuring the Olympics, The Open, the British Grand Prix and test cricket awaits, and the Proms are set to make a welcome return for the musically minded.
Improving financial confidence
Recent weeks have also witnessed a notable rise in financial optimism amongst UK consumers buoyed by the lifting of lockdown restrictions and 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.
Spend, spend, spend?
In addition, many people have witnessed a substantial reduction in their outgoings over the past year, with commuting, childcare and entertainment costs all falling considerably for the typical household. As a result, a significant proportion of the consumer base are sitting on relatively large sums 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 meals out, shopping trips and holidays.
Challenges vary by age
Unsurprisingly, the experiences and challenges faced by younger and older members of society have differed starkly
during the pandemic. While the health crisis certainly put the over-80s most at risk, the financial fallout has hit younger generations the hardest. For instance, research* shows 18 to 24-year-olds are more likely to say they are struggling financially and express worries 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!
*LV=, 2021
