Andy Zanelli, head of retirement planning, AXA Wealth, comments on ONS Measuring National Well Being - Personal Finance report.
"Yesterday's ONS Measuring National Well Being report into personal finances* makes for sobering reading. With 28% of respondents indicating that they expected their personal finance situation to worsen over the coming six months, it is evident that there is much pessimism and concern among consumers. This is backed-up by the AXA Big Money Index** research which shows that just 16% of consumers expect to see a short-term improvement in their financial situation. The Big Money Index also reflects the distinct lack of confidence in personal finances as people look to make savings and cut their spending significantly, with 28% of consumers having cut back on food spend alongside wider cuts in utilities. ONS data echoes this with 26% of respondents saying they were ‘just about getting by'.
"Money matters can often dictate how we feel in our day-to-day lives. It is understandable that people are looking to make cut-backs and savings as they struggle financially, but the areas in which they cut back needs careful thought. The Big Money Index shows that four in 10 people are now not saving for retirement. Should consumers choose, in the short term, to postpone payments into their pension there could be significant consequences further down the line. Making up the shortfall in contributions could take years to achieve and ultimately delay plans for retirement."
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