Money hopes up after lost years

HOUSEHOLDS are optimistic their finances will improve in the next 12 months – for the first time in five years.

Younger people are particularly upbeat, Scottish Widows said.

An index score of 50.3 was produced when people were asked how they think their household’s financial situation will have changed a year from now.

Scores above 50 show an improvement – and it marks the first time since the first quarter of 2016 – when it was 50.4 – that the measure has been in positive territory.

The most recent tally for 18 to 34-year-olds was more positive than average, at 55.7.

The return to work for many staff has also eased some concerns regarding job security, with UK households at their least downbeat for two years, according to the report.

The research found that 68 per cent of people expect to stay on track with retirement plans despite the pandemic, while 17 per cent anticipate that they will delay retirement.

Just over two-fifths of people have managed to build up additional savings since February 2020.

Two-thirds of households in the highest income bracket reported an increased nest egg in the pandemic, compared with just 18 per cent in the lowest income band.

And the middle-aged are the most likely to hang on to their extra cash beyond next year – more than nine in 10 hope to.

Meanwhile, Samsung’s corporate vice president for the UK and Ireland has said the high street will remain an important outlet for business after the pandemic.

Conor Pierce said people are returning to shops as lockdown curbs are increasingly lifted.

He added: “People certainly see value in retail and retail for us is very important.”

McDonald’s also gave bricks and mortar a boost by announcing it will hire 20,000 more people and open 50 new restaurants in the UK and Ireland.

The jobs and branches in the coming year come in anticipation of increased crew capacity as part of changing Government coronavirus guidelines.