Many people are struggling to meet their living expenses, and have spent most or all of their earnings by the end of the month, cccording to research by Engage Mutual,
The research, released today, revealed that 46% of people are struggling to make ends meet by payday, with a quarter dipping into overdrafts to cover expenses. Estimates suggest that 19% of people borrow from family and friends to fill the gap and pay for unexpected costs or bills.
Living from one pay cheque to the next in this way leaves little room to save or plan for the future - with 45% of people firmly believing that they’ll be “working until they drop”.
Kathryn McLaughlin from Engage Mutual said:
“Over the last few years we have seen an increase in the cost of living however, many have not received a rise in salary to match. With this in mind it's no surprise people are struggling to save meaningful amounts of money, and find themselves short of cash by the end of the month.”
The research also indicates that 45% of UK adults to not yet have a pension plan in place, and two thirds don’t even have a will to secure the future of their loved ones.
The study highlighted differences between age groups, with 18-24 year olds admitting to being most likely to go on a spending spree they couldn’t afford. However, although over 55s perceive themselves as being better at managing their money, a third of this group still don’t have a pension and 35% haven’t written a will.
Even those who are saving don’t feel like they’re saving enough according to the report and 62% said that they could only survive on their savings for six months if they lost their job. Although saving is difficult when everyday expenses are high, the importance of sound financial planning and budgeting shouldn’t be forgotten. McLaughlin said:
“Times are tough, and putting something by invariably involves sacrifice, but saving little and often can make a difference over the long term.”