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Soaring inflation is UK’s main financial concern

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Soaring inflation is the top financial concern for UK adults, in both the long and short term, according to new research from M&G Wealth.

A quarter (25 per cent) of UK adults cited soaring inflation as their main financial concern over the coming year, according to a survey of 2,000 people.

A further 18 per cent said they were worried about their investments losing money while 17 per cent said they were worried about not saving any money at all. 

More than a quarter (26 per cent) of those surveyed said they were worried the UK’s cost of living crisis will prevent them from saving, while 18 per cent said their bills are already too high for them to save. 

Equally, 14 per cent of respondents said they save less than £50 a month, while 8 per cent said they have no savings at all.   

Looking long term, more than a fifth (22 per cent) of those polled said rising inflation is their main financial worry when looking out to the next five years.

Les Cameron, a savings expert at M&G Wealth, said: “While consumers have no control over rising inflation, currently at a 30-year high and predicted, by the Bank of England, to reach over 7% by the spring, there are steps they can take to take control of their finances.”

“From energy bills to their weekly shop, families are starting to feel the pinch, and as a result are unable to save as much as they would like.” 

“Many are taking practical steps such as shopping around for cheaper prices to bring down the cost of basics like bread and milk, and setting out and sticking to a budget will help families feel more in control of their spending in the short-term.” 

“Though it may feel difficult at the moment, investing any savings, no matter how little, will provide a long-term benefit and hopefully some peace of mind for the future.”

“When it comes to savings,a consumers are understandably worried. Current savings rates are lower than inflation, meaning those with significant cash savings really need to consider whether to accept that inflation is eroding the value of their money, or take some investment risk to try to maintain or grow the real value of their money.” 

“Investing is not, however, a decision to be taken lightly and is an area where most people could benefit from receiving some form of financial advice or guidance before going ahead.”