A recent study by the Government-backed body, the Money Advice Service, reports that 52% of adults are currently living on the edge and struggling to pay the bills – equating to over 26 million people in the UK.
This is a sharp and dramatic rise of 9 million people compared to the last time a similar study was carried out by the now mothballed Financial Services Authority 7 years ago – back in 2006 only 35% were having such a hard time financially.
The report goes on to claim that the economic downturn has encouraged us to “live for now”, which is further impacting our ability to save for the future.
When asked if they would rather have £200 now or £400 in four months’ time, 20% said they’d take the £200 and a quarter of respondents said that they prefer to live for today than plan for tomorrow.
The report’s findings are supported by our Future of Britain study of 2,000 nationally representative UK adults.
Future of Britain found that 55% of those surveyed are struggling to meet financial commitments, with the financially squeezed 35-44 year olds (65%) amongst the most affected.
Next year will see the Government publish a strategy on how to help improve the nation’s finances, but brands need not be worried as the consumer is ‘living for now’ and ready to spend.