Female savers hit hard by effects of Covid-19 lockdown
MANY households’ saving and spending habits have been turned upside down during lockdown, as incomes and outgoings changed.
According to research by Aviva, women are more likely than men to feel they now have less spare cash. Nearly four in 10 (38%) women felt this way, compared with 29% of men. Meanwhile, 32% of 25-34 year-olds are now more concerned about their ability to save, coupled with fears of losing their job due to the impact of Covid-19.
Alistair McQueen, head of savings and retirement at Aviva, says: “Female savers have been disproportionately affected, as workers in sectors like hospitality and retail, are more likely to be younger females.
“Younger people across the board also face a significant challenge. Those under 34 typically struggle to save under normal circumstances, but the current conditions have exacerbated this, as they continue to come up against large costs, but face a more uncertain financial future. This age group typically spends a greater proportion of their budget on housing and bills.”
Struggling to balance a bruised budget? Aviva has some tips:
Invest the time: Spending couple of hours going through everything could deliver big rewards and help you stick to a budget.
Look back: Go through your pay slips to understand how much money is coming in, and then check bank and credit card statements to understand how much is going out, and on what. Look forward: Use the information to estimate how much you may spend in the year ahead and on what.
Remember, lockdown will mean you spend more in some areas and less in others. The Money Advice Service has an online calculator (moneyadviceservice.org.uk/en/ tools/budget-planner).
Mind the gap: Now you’ll have a better understanding of how much money is coming in, going out, and where to. If you spend more than your income, look at cutting back to stop problems getting worse. Take control: Look at the top 10 biggest areas of spending; could you save money by shopping around and switching suppliers? Check savings to see if money could work harder, by swapping to a higher interest bank account or paying more into a pension. Finally, keep track of spending, and revise your budget as
needed.