Around one in 10 UK households have started to consider other generations in their long term financial planning due to the pandemic, according to Scottish Widows Household Finance Index.
The index, which measures households’ overall perceptions of financial wellbeing, dipped from 44.7 in the second quarter to 44.0 in Q3 2021.
The key themes of the latest index were a return to work resulting in employment increasing for the first time since Q1 2020 offset by higher prices and households starting to plan their finances to support other generations.
The index found that 73% of UK households surveyed considered preparing for the future financial wellbeing of loved ones in other generations to be important, with more young people aged 18-24 of this view than any other age group (82%).
But nearly a quarter of households surveyed (24%) would not consider other generations such as children or parents in their financial planning at all.
Of those households which have increased the scope of their long-term financial plans, 27% were not previously including other generations of their family in their planning before the start of the pandemic.
The index is compiled each quarter by IHS Markit, using original monthly survey data collected by Ipsos MORI from a representative sample of 4,500 UK households.