Three-quarters of adults fear they will struggle to cope if cost of living rises, study claims

More than half of respondents worry their income will not keep pace with rising prices

One-third of adults said they would have to change the way they shop if the cost of living increased (Getty Images/iStockphoto)

British adults fear everyday costs such as phone contracts, train tickets and dental check-ups will be “unaffordable” by 2021, a study has found.

Research carried out among 2,000 adults found almost three-quarters were concerned they will struggle to cope if the cost of living continues to rise.

The cost of utility bills, supermarket food, petrol and housing all featured highly on the list of things which respondents worried will soon increase in price.

One-third of adults said they were worried about insurance costs rising, with the over 50s almost twice as concerned (49 per cent) as younger generations (27 per cent).

More than half of all adults feared their income was unlikely to keep pace with rising prices over the next three years, while the same proportion had already been forced to adapt their shopping habits due to price rises.

Another third of adults said they would have to change the way they shopped and would greatly struggle if prices rose further.

The study was commissioned by Saga Insurance, which has recently launched a three year Fixed Price Promise for motor and home insurance.

Gary Duggan, CEO of Saga Insurance, said: “It’s clear from the research findings that on the whole the nation is extremely worried about future costs.

“Uncertainty about prices rising makes it harder for people to budget and plan their outgoings based on their income.

“As many suggested, a rise in prices doesn’t necessarily mean a rise in wages, so fixed prices for a few years will at least reassure people that no unexpected outgoings will arise.''

The research also found more than two-thirds would like to fix the price of a product or service, with the top choices being electricity bills and petrol.

More than four in 10 would choose to fix the cost of insurance and another four in 10 wanted to see motor and home insurance prices stay as they are, while one sixth did not want a rise in travel insurance.

Half of respondents said they wanted petrol prices to come to a halt for the next three years, while 69 per cent said they would like utility bills to stay as they are.

One quarter wanted the cost of their core weekly shop to be fixed, in particular bread and milk.

It also emerged three-quarters of the over 50s were worried about supermarket food going up in price by 2021, compared with 54 per cent of under 50s.

If prices were fixed, three in five said they would find it easier to manage their finances, with more than half of those saying things simply cost “too much” nowadays.

Recently, the ONS revealed that household costs have risen more rapidly for retired households than non-retired since 2017.

The study, carried out via OnePoll, also found 27 per cent of under 50s found it hard to budget compared to just 12 per cent of over 50s, suggesting younger generations will struggle the most with price rises.

Worryingly, three in 10 adults have already found themselves unable to afford something due to price increases at least once or twice.

SWNS