Rising cost of living and impact of Brexit top Nation’s biggest money worries

A new survey¹ into the Nation’s money worries found that 40% of Brits are bracing themselves for a financially very difficult 2021, with 36% seriously concerned about increases in the cost of living and rising bills.  The financial cost of Brexit was the second biggest (30%) financial concern.    

The survey, commissioned by GoCompare, asked over 2,050 UK adults about their financial outlook for 2021.  17% of those surveyed are seriously concerned about the health of their finances, 6% will have to ask friends and family for financial help.  Only 19% of people surveyed said they hadn’t any money worries for 2021.

Bills and rising costs

The rising cost of living was cited as the biggest financial worry, followed by potential price increases caused by Brexit.

Affording to keep a roof over their heads was a major concern for some, with 7% admitting maintaining mortgage or rent payments was their biggest worry, while 5% said they are worried about falling into mortgage arrears.

Debts and savings

For one in ten people, credit card and other unsecured debt will be a problem in 2021.  16% will start the New Year with credit card debts, and 12% expect to be in debt to their card company throughout the whole of 2021.

Starting the year without any savings was a key concern for 17% of UK adults while 21% said they were worried that they have insufficient savings.  Not saving enough for retirement was the biggest financial concern for 14% of people.

Falling interest rates adversely affecting their income is the biggest financial worry for 11% of those taking part in the survey.

Work

Following an economically turbulent 12 months, job security is a key issue for many people, 13% fear losing their job, while 12% are worried about being able to find sufficient work.  The prospect of a pay freeze in 2021 is a major financial headache for 13% of people.

Sally Jaques, of GoCompare Money, commented: “Our day-to-day lives and the wider UK economy have been rocked by the coronavirus pandemic.  Restrictions aimed at halting the spread of the virus have had a devastating impact on many businesses and, have caused the UK to fall into recession.  In turn, many people have lost their jobs or seen cuts to their income. 

“The vaccination programme will help us get back into some semblance of normality.  But, without doubt, 2021 will be a tough year for many people as the financial fallout of the pandemic continues to be felt.

“Using a comparison site like GoCompare can help stretch your household finances by making it easy to compare a wide range of products and services from car insurance, mortgages, utility bills to credit cards and mobile phone deals.  Providers constantly review their pricing, so even if you think you are currently getting a good deal on your financial products, it’s worth shopping around on a regular basis. 

“Time spent shopping around for the best deals on your outgoings could save you hundreds of pounds and give your household budget a much-needed boost.  For example², GoCompare.com customers save, on average, up to £277 on their car insurance, up to £107 on their home insurance, and up to £567 on their gas and electricity bills.”

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For further information please contact:

Gordon, Jason or Liz at MAW Communications on 01603 505 845

Keep up-to-date with GoCompare on Twitter; @GoCompare

Notes to editors

On 7 December 2020, an online survey of 2,057 randomly selected Great British adults was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.1%. The results have been weighted by age, gender, region and social grade to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Great Britain. Discrepancies in or between totals are due to rounding.

²GoCompare customer savings:

Car insurance: According to independent research from Consumer Intelligence conducted between 1 August to 31 August 2020, 51% could save up to £277 with GoCompare Car Insurance.

Home insurance: Price savings are based on independent research by Consumer Intelligence during 01 August 2020 to 31 August 2020: 51% of consumers could achieve a saving of up to £107 with Gocompare Home Insurance.

Energy Bills: Between 1 January to 31 March 2020 at least 10% of customers who provided their usage and received a price for switching both gas & electricity could save £567.16.

GoCompare

GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.

GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.

When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.

GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).

For more information visit www.gocompare.com and www.gocogroup.com