Handelsbanken finds half of Brits fear a fall in living standards

Nearly half (46%) of UK adults are worried that their standard of living will fall over the next 12 months, according to research conducted for Handelsbanken Wealth & Asset Management.

Despite recent declines, energy prices still top people’s biggest concerns on the factors threatening their living standard, along with the cost-of-living crisis and high prices caused by inflation. Concern was highest among those in their 30s (55%), dropping to 38% of over 50’s – likely due to accumulated savings.

The study showed that these concerns are changing how much time people spend reviewing their finances each month.

On average, consumers spend over six hours a month on their finances, with groceries and other household costs taking up the most time (52 minutes) followed by bank account management (48 minutes), and paying for holidays (42 minutes). Wealthier people with assets over £100k spend longer keeping their financial house in order, averaging eight hours a month. Men, meanwhile, typically spend around 20% longer than women.

A tougher financial climate means we expect to spend more time managing our finances overall, largely in response to dealing with rising costs and stubborn inflation (48%) and the need to save more money (41%).

When it comes to those looking to decrease their time investment, nearly a third (29%) said they plan to reduce the time spent looking at their financial affairs as it makes them feel too anxious. This may go some way towards explaining the fact that a significant proportion of people don’t currently spend any time at all reviewing commitments such as their pensions (33%), insurance (31%) or investments (23%).

Alasdair Wild, Area Manager at Handelsbanken Wealth & Asset Management:

“Dealing with the ongoing cost-of-living and keeping your finances in check can be a time-consuming process and a real challenge for most people given there only are so many hours in the day.  However, doing the bare minimum is unlikely to offer much protection in such a tough financial climate, and investing time to plan and manage your finances and, when required, bringing in external professional support, can make a real difference to protecting your standard of living. While avoiding the issue may provide temporary relief, it will only exacerbate problems down the line, so seeking support is key.”