UK adults are feeling more financially comfortable compared to a year ago, according to research from LV=.
The LV= Wealth and Wellbeing Research Programme found that the nation’s financial resilience is slowly improving as its wellness tracker increased by two points since September 2023, and four points since December 2022.
The wellness tracker tracks the financial wellbeing of UK adults, via a quarterly survey of 4,000 UK adults.
Ranging from -100 to +100, the LV= Wellness Tracker produces a single measure of the nation’s financial resilience over time by comparing the number of people who are financially ‘comfortable’ to those who are ‘struggling.’
Overall, 59% of respondents described their situation as comfortable, while 41% said they were struggling.
Looking at younger people, one in five (22%) UK adults aged 18-34 expect their finances to improve in the next three months.
But people between the ages of 18 and 26 (Generation Z) were twice as likely to miss payments on credit cards and loans compared to the nation as a whole (8% vs 4%), as well as mortgage or rent (8% vs 3%) and utility bills (8% vs 5%).
People between the ages of 27 and 42 (Millennials) are twice as likely to have received a final demand letter (6% vs 3%) and are the group most likely group to have used a pawn broker in the past three months (5% vs 2%).
Overall, a quarter (26%) of adults have seen an increase in costs but say they have not been impacted by the rises. This number grows to 47% for those aged over 78.
Compared to UK workers, retirees generally reported feeling more financially comfortable. Over a third (37%) were able to comfortably pay off their credit card or loans debts. Despite this, their wellness tracker score fell by -2 this quarter
David Hynam, CEO of LV= (pictured) said: “The LV= Wealth and Wellbeing Research Programme tracks the financial confidence of UK adults and our latest data shows a slight rise in sentiment as inflation has slowed.
“Millennials and Generation Z are more negatively impacted and are more likely to need financial support.
“The LV= Wellness Tracker has risen slightly, showing that positive sentiment does not always match financial situations.
“While a fifth of 18-34 year olds expect to see their finances improve in the next three months, some young people are experiencing high levels of unsecured debt.
“The green shoots of growth are there, but there is still work to be done to ensure everyone in our society has the opportunity to feel financially confident.”