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62% of savers anxious about rising costs of living

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Late last year, we commissioned some research in order to find out how savers were feeling about the current climate – and the effect this was having on their expenses. Here is a summary of our key findings.  

Two thirds of people are anxious about rising costs of living  

Our research showed that close to two thirds of Brits (62%) are anxious about the current social, economic and political climate and the impact this is having on the cost of living.  

One in five (18%) said they felt very anxious about the current climate, with women reporting higher levels of anxiety than men – 41% of men said they did not feel any anxiety about the current state of the economy, compared to only one third (34%) of women.  

90% of people are already seeing prices rise  

The impact of price rises on consumers has been well documented in the press and through official data, so it’s no surprise that nine in ten people we surveyed confirmed that they were already impacted by this.   

Close to three quarters of respondents (71%) have already noticed that food is more expensive, while more than two thirds (69%) are already paying more for fuel and 60% noticing higher energy bills.  

As a result, over a quarter of Brits who have noticed increases have saved less (27%) or cut back on spending (27%), while 17% had to dip into savings to make ends meet.  

Brits continue to be anxious about job security in the face of economic uncertainty  

People also continued to report anxieties around job security during the ongoing pandemic: 16% said they were still anxious about losing their income or being made redundant and 13% said they were anxious about someone in their household facing the same insecurity.  

Brits are maintaining good saving habits in face of rising costs  

The vast majority of savers (71%) used the lockdown period as an opportunity to take on long-term saving habits and reduce spending.  

More than half of those surveyed also set themselves a new financial goal and 88% of those who committed to a goal confirmed they had so far stuck to it.  

The two most popular financial goals were to spend less money on going out socialising and entertain at home more, as well as spending less money on daily non-essentials such as takeaways and coffee shop visits – both commitments were made by nearly a quarter of respondents (23%). Saving regularly towards a specific goal such as a holiday or house deposit was a priority for one in five (19%), whereas saving towards an emergency fund closely followed – a priority for 18%.  

Reducing lunch costs by bringing a packed lunch into the office and reducing monthly outgoings on regular expenses such as a gym membership were long-term goals for 11% of respondents respectively.  

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*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551