REVEALED: TRUE TOLL OF COVID ON YOUR LIFE
THE pandemic has caused fear and uncertainty among huge numbers of the public, a Daily Express poll reveals today. Nearly one third of us are pessimistic about our future finances, although men and young adults are more hopeful than women and the over-54s. One in five adults of all ages (19 per cent) admit they are struggling financially but this jumps to nearly a quarter for those aged 18 to 34 (23%) and aged 35 to 54 (24%). Across genders and age groups, all those questioned were more likely to say their financial situation had deteriorated due to the coronavirus crisis. While the economy is picking up, it remains nearly 25 per cent smaller than in February, according to the Office for National Statistics (ONS). Manufacturing and house building showed signs of recovery in May but the ONS said that the economy as a whole was in the “doldrums” and the unemployment rate, now at 3.9 per cent, is set to rise. According to our poll, many of us have needed a helping hand with finances in lockdown. One in four adults (26%) say they have given financial support to family or friends to help them through. Perhaps surprisingly, this rises to nearly a third (31%), among the youngest – those aged 18 to 34. Most people (72%) said they had got through the pandemic so far without borrowing from friends, relatives, banks or payday loan companies, or by accessing help from food banks and charities. But the figures mask a disturbing age divide. Among those aged 18 to 34, only 45 per cent have managed to survive without going into debt or seeking charitable help, while just 7 per cent of over-55s reported they had needed third-party support. The employment situation continues to be a major concern for many, with a third of workers feeling less secure in their jobs due to Covid-19. Those in the West Midlands, South East and London are most likely to say they feel “very secure” (10%), while 43 per cent of workers in the South West say they are less secure job-wise than before lockdown. A fifth of all workers reported being furloughed but there is a stark contrast between men and women. A quarter of women (23%) have been furloughed compared to fewer than one in five men (18%). The financial uncertainty has also led many of us to think again about our retirement. Nearly three in ten (28%) of over-55s report reconsidering plans. One in seven (16%) are thinking of bringing retirement forward while one in eight (12%) are considering putting it off for longer. Financial expert Warren Shute, bestselling author of The Money Plan, said the responses reflect a human tendency to imagine whatever situation we find ourselves in will continue into the future. He believes we need to familiarise ourselves with the new financial landscape and look to protect our futures by following expert advice. Warren added: “Remember, this time will pass, and those who plan now will reap the benefits in the coming months and years. So focus on your personal economy – get your own financial house in order. There will be winners and losers and this won’t be dictated by wealth or intelligence. It will be dictated by our decisions and actions.” Warren counselled: “We can’t control the economy around us, we can only adapt our behaviours. For example, the Bank of England reported that a record £7.4billion of consumer debt was repaid during lockdown, and more than one million people have quit smoking – this is brilliant. “You need to ensure there’s more money
coming in than going out. This may mean going without things temporarily. And, when you’re spending, shop around.” While some poll findings look alarming, Warren believes they’re understandable. He said: “Most people struggle with their finances during good times. Add the pressure and fears of a pandemic and it makes complete sense.” He also said about young people: “When you’re starting out, your finances are weaker. I would expect them to need support. I know I did, and I never experienced a pandemic growing up.” Meanwhile Debbie Kennedy, from insurer LV=, said: “Fears about jobs losses and the isolation caused by lockdown are all factors behind the rising anxiety levels. The outbreak has revealed just how precarious the finances of many people are and highlights the benefits of protecting income.” Jackie Boylan, of investment management firm Fidelity International, said: “The gender pension gap is all too real, and we have a whole generation of women set back even further by Covid-19 via job losses; taking on more of the caring responsibilities; and the domestic burden.” Joanna Elson OBE, chief executive of the Money Advice Trust, which runs National Debtline and Business Debtline, said: “Coronavirus is crippling the UK’s household finances. The Government needs to do even more. “Direct cash support to affected households, an immediate suspension of debt collection and bailiff visits, and widespread payment holidays are needed right now.”
Savanta ComRes polled 2,079 UK adults aged 18+ online between July 10 and 12. Data was weighted to be representative by age, gender, region and socioeconomic factors. Savanta ComRes is a member of the British Polling Council and abides by its rules. Full tables are at comresglobal.com.