Households ‘feeling downbeat about their financial outlook for next 12 months’

The youngest age group, between 18 and 34, bucked the overall trend, remaining upbeat generally, Scottish Widows said.

Vicky Shaw
Wednesday 29 September 2021 00:01
Households’ expectations for their finances in the year ahead have turned negative, according to Scottish Widows (Dominic Lipinski/PA)
Households’ expectations for their finances in the year ahead have turned negative, according to Scottish Widows (Dominic Lipinski/PA)

Households’ expectations for their finances in the year ahead have turned negative, according to an index.

When people were asked about their financial outlook for the next 12 months, the Scottish Widows Household Finance Index produced an overall score of 49.2 in the third quarter.

This was down from 50.3 in the previous quarter.

Scores below 50 indicate people perceive a deterioration and those above 50 suggest that households believe the situation is improving.

The youngest age group, between 18 and 34, bucked the overall trend, remaining upbeat generally, with an index score of 56.2.

Around 10% of households are now considering intergenerational planning

Jackie Leiper, Scottish Widows

The coronavirus pandemic has also led to changes in long-term financial planning when it comes to supporting their families, the findings suggest, with about one in 10 (9%) having increased the scope of their long-term financial planning to include more generations as a result.

Jackie Leiper, pensions, stockbroking and distribution director, Scottish Widows, said: “UK households recorded slightly weaker trends as the post-lockdown recovery began to subside and living costs surged.

“Overall financial wellbeing and cash available to spend fell at slightly quicker rates than in the second quarter.

“However, our long-term financial planning trackers highlighted a wave of positive developments in quarter three.

“Around 10% of households are now considering intergenerational planning, which suggests that Covid-19 has made more families think about how important it is to consider being financially prepared for the unexpected.”

The survey is based on monthly responses from around 1,500 people aged 18 to 64.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in