Half of savers turn to advice and guidance amid cost of living crisis

According to the findings of the latest LV Wealth and Wellbeing Monitor, a greater proportion (57 per cent) of mass affluent people have sought guidance or advice on managing the increased cost of living.

When seeking advice and guidance, 27 per cent referred to MoneySavingExpert website, 19 per cent were searching online and “Googling” and 11 per cent were reading newspapers.

Some 8 per cent were using social media, 5 per cent chose to speak to an IFA and a further 5 per cent have spoken to Citizen’s Advice. 

Mass affluent people are nearly twice as likely as the general population (9 per cent vs 5 per cent) to speak to a financial adviser about managing rises in the cost of living

Managing director of protection, savings & retirement at LV, Clive Bolton, said: “The results of the latest LV Wealth and Wellbeing Monitor highlight how the finances of millions of people are being squeezed by the large rise in the cost of living. 

“The indices for savings, financial outlook and outgoings are the worst recorded since we started surveying consumers during the coronavirus pandemic, and worse than in the dark days of Covid.”

People are taking a series of measures to cope with the rise in the cost of living including buying cheaper brands (31 per cent), saving less (30 per cent) and having less meals out or holidays (27 per cent). 

Around 20 per cent are dipping into savings and cancelling subscriptions (20 per cent) while 4 per cent have stopped or reduced pension contributions and 3 per cent have cancelled insurance policies.

Bolton added: “Consumer sentiment had been steadily improving between spring and early autumn 2021 but the sharp rise in the cost of living has dented consumers’ confidence. 

“Millions of people say they are struggling financially and standards of living are falling across the country.”

sonia.rach@ft.com

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