Continuing our look at the risk of sacrificing savings to cover everyday expenses in the current economic climate. As long as these difficult conditions persist, the risk of depleting savings to pay for routine expenses, which is currently quite modest, will persist. Almost everyone (93%) believes that rising costs and high inflation will have an influence on their financial status, or currently have an impact on it.

If at all possible, the initial step should be to reduce expenditures, such as by reducing unnecessary purchases and looking around for better offers. This will be more helpful in the long run than making decisions that would impact future finances, such as cutting or ceasing pension contributions, even if just for a short time.

Tomorrow we will look at tips for potential spending cutbacks in the current environment. Please contact us for more information on how we can help protect your future financial well-being and the options available to you.

Source data: [1] Research conducted among a sample of c.2,600 contactable Standard Life customers
between 9–22 May 2022. Calculations are intended for the sole purpose of providing an illustration regarding the projection of savings and pensions. They should not be used with the intention to give an accurate representation of real world outcomes.