Households’ optimism about future finances improves

Nearly one in five people expect their finances to improve in the next few months, as coronavirus restrictions are gradually eased and the vaccination rollout continues, a report has found.

Some 18% of people surveyed in March expect to see an improvement in their finances over the next three months, up from 12% who believed this when a similar study was carried out at the end of 2020, according to pensions and retirement specialist LV=.

Some 18% of people said their finances had already improved over the past three months, which also marked an increase compared with the 11% who said this at the end of 2020, the latest wealth and wellbeing monitor from LV= found.

Around 4,000 people across the UK were surveyed for the latest report.

The research also suggests more people have been able to build up a savings buffer recently.

Just over a quarter (27%) in the latest survey said they have increased their savings over the past three months, compared with 23% surveyed at the end of 2020.

The research also asked people if they were worried about contracting coronavirus.

In March 2021, 23% of people said they were worried, as did 32% of people who were surveyed in December 2020.

The UK Government has emphasised the importance of sticking to the rules and remaining vigilant, in order to limit the spread of the virus.

It has reminded people that coronavirus still poses a very real threat and said the progress made by the vaccine rollout must be protected.

Clive Bolton, managing director of savings and retirement at LV=, said: “The last three months have been difficult for millions of people, but increasing numbers are becoming more optimistic about the future.

“LV=’s research indicates that although many people are still struggling financially, fewer people are worried about contracting Covid and an increasing proportion expect their finances to improve over the next three months.”