New polling research by Aegon shows the majority of people in the UK are feeling positive about their finances for the year ahead.
The research finds over half of UK adults (52%) say they are feeling positive overall about their finances in 2024, while just under two in five (38%) are feeling negative. Females (47%), and those aged 50 to 59 (46%) are less likely to feel positive.
Paying for basic living expenses (37%) is the most common financial priority for UK adults going into 2024, especially so for females (42%) and those aged 50 to 59 (39%). Building emergency savings (32%) and enjoying life (28%) are also common financial priorities, although ‘enjoying life’ has dropped down the priorities list from the previous research carried out in late 2021.
When asked if specific events would change how people feel about their finances, almost half (49%) think a lowering of inflation would make them more optimistic. By contrast, only 6% would be more pessimistic and around a quarter (26%) say their view wouldn’t change, while 16% are not sure.
Steven Cameron, Pensions Director at Aegon comments: “As we enter 2024 and look to the year ahead, our research suggests people’s confidence and optimism is returning when it comes to their personal finances. For many, this is being bolstered by recent falls in inflation and hopes for further reductions.
“But our research also points to how the cost-of-living crisis and paying for basic living expenses remains the priority for many individuals and their personal finances.
“Since previous research, released in 2022, ‘Building up emergency savings’ has overtaken ‘Enjoying life’ to sit in second place. Those prioritising ‘Enjoying life’ has dropped to 28% from 34% over that period.
“Those aged 50 to 59, in the early years of their ‘Second 50’ are less likely to feel positive about finances and a gender divide exists, with females far less likely to feel positive about finances than males.
“Our research makes it abundantly clear that lower inflation would make people more optimistic about their personal finances in the year ahead.
“Recent drops in inflation are hopefully a sign that inflation can be brought back under control after a tumultuous 18 months.
“Crucially ‘paying for basic living expenses’ (37%) is the most common financial priority for UK adults going into 2024. The cost of everyday living, from hefty gas and electricity bills to the price of food is a huge challenge for millions of individuals and households.
“Those on a fixed income continue to face a tricky time ahead, and that includes many pensioners despite the inflation busting 8.5% rise in the state pension from this April due to the triple lock.
“The elephant in the room remains whether the triple lock is sustainable long term. The state pension is a lifeline to millions but is very costly for today’s workers to fund from their National Insurance. We urge all political parties to make their state pension intentions clear ahead of the General Election. It could have a major influence over voting preferences.”
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