According to the latest research by the Office for National Statistics, 77% of people over the age of 16 reported feeling “very or somewhat worried about the rising cost of living”.
WEALTH at work, a leading financial wellbeing and retirement specialist, has also conducted research that has looked at the impact of financial worries on people’s lives.
The survey of 2,000 UK adults found that nearly half of UK adults (47%) say that financial worries do impact their life, with more than a quarter (26%) saying that it makes them feel depressed and anxious, rising to more than a third (35%) of 35-54 year olds. Nearly a fifth (17%) admit they struggle to sleep worrying about money, which rises to 22% of those aged 18-34.
It also revealed that one in seven (14%) feel embarrassed about their financial worries, again impacting younger people more commonly. Nearly a quarter (23%) of those aged 18- 34 feel this way, compared to only 6% of those aged over 55.
One in ten (10%) say financial worries mean they avoid seeing people, 9% admit it causes arguments with family and in relationships, and 7% believe it makes them less productive at work.
Not being able to pay basic living costs such as rent, energy bills and food is the biggest financial concern for UK adults (34%), with a third (36%) saying that they are having to cut back on what they spend due to increases in the cost of living, increasing to 42% amongst those aged 35-54.
Other worries include not having savings for unexpected costs (29%), being in debt (23%), affording their current lifestyle (17%), not being able to provide financially for their family (16%), not being able to retire when they want to (15%), and rising interest rates (14%).
The survey found that more than four fifths (88%) say that they know the amount of money they spend on essentials (mortgage, rent, bills, food and energy) each month, and three quarters (75%) know the amount of money they spend on travel and fuel each month. With more than half of UK adults (51%) saying that they already shop around for the best deals on household bills and insurance and a similar proportion (49%) say that they never buy anything they cannot afford.
Despite this, only just over a third (38%) actually keep a budget and know what they can spend each month.