9% of people ‘say their living costs have risen by at least £500 per month’

Nearly one in 10 (9%) people say their monthly outgoings are at least £500 higher than a year ago, a survey has found.

People who are retired meanwhile have typically seen their living costs increase by an average of £163 per month, pensions and retirement specialist LV= said.

One in seven (13%) of those with extra living costs said they are struggling to pay for heating and 10% are finding it difficult to pay for food, according to the research involving 4,000 people.

Surging living costs and some people perhaps doing more activities than they were earlier on in the pandemic will be putting a strain on incomes.

A third (36%) of people said they are saving less in order to get by and 8% are taking on more debt.

One in 20 (5%) has asked friends and family for help.

Nearly a fifth (19%) have cancelled subscriptions to help make ends meet, according to LV=.

It emerged this week that streaming giant Netflix has experienced an unexpectedly large fall in subscribers, with the drop stemming in part from the impacts of the war in Ukraine.

Three in 10 (30%) of people meanwhile told the LV= survey they are having fewer holidays and meals out.

Clive Bolton, managing director of savings and retirement at LV=, said: “Inflation fears have been rising since summer and rising prices pose a problem for retired people.

“Those on fixed incomes will see the purchasing power of their incomes fall.

“Those drawing an income from their pension fund may be forced to withdraw more money from their pension fund than they anticipated and increase the risk of running out of funds in retirement.

“Rising fuel bills mean many are making cutbacks to other areas of expenditure, while many are dipping into savings, taking on extra debt or borrowing from family to make ends meet.

“One of the big issues people now face is how to also protect the future spending power of their savings being eroded by rising prices…

“One solution could be smoothed investment funds that are designed to reduce the volatility of investment markets and produce real returns that over the long term.”

He said a financial adviser can help people to identify the most suitable funds.