Member Article

Rising living costs impacting ability to save in the North East

• Over a quarter (26%) are saving nothing each month • 71% in the region say the rising cost of living has had an impact on their ability to save money

Research released by Accenture reveals that almost three quarters (70%) of adults in the North East believe the rising cost of living has impacted their ability to save money. The survey of over 2,000 UK adults, found that just over half (56%) of North East residents feel confident about their future finances.

The survey also revealed that less than a third of those based in the region had been able to save since the start of the pandemic in March 2020 (30%), with more than a quarter claiming their savings had remained the same (28%).

When asked about their financial confidence, the cost of goods was highlighted as the most important factor, with over two-thirds (70%) in the North East saying price increases are having an impact. House prices (31%) and rising interest rates (57%) were also cited as important factors.

Meanwhile, rent prices have a disproportionate impact on young people’s confidence across the UK, with 53% of 18-24-year-olds citing high rents as affecting their ability to save, compared to 27% of the wider population in the region.

Allan King, Accenture’s Head of North East operations, said: “The level of uncertainty over the last two years has emphasised the importance of saving, but 2022 offers a difficult environment for those wanting to save across the UK, and the North East more specifically. It’s concerning that more than a quarter haven’t been able to save anything at all since the start of the pandemic, and even more concerning how few 18-24-year-olds have confidence in their future finances.

“We run the risk of creating a generation of borrowers, as opposed to savers. Financial wellbeing has never been more important, and the financial services sector has an opportunity to build financial confidence, and in turn, empower a generation of savers.”

This was posted in Bdaily's Members' News section by Fred Allen .