Pensions - Articles - Cost of living and economy fears rear their ugly head again

 The survey found that between 5–30 March 2025, the most reported important issues facing the UK today were the cost of living (87%), the NHS (83%), and the economy (72%).

 Around 2 in 3 adults (66%) reported that their cost of living had increased in the last month; this proportion has been increasing since 5 to 28 July 2024 (45%) and is now at similar levels to May 2023 (67%).

 Fears around the economy have also risen by 4 percentage points from 68% to 72% between December and now.

 In the first three months of 2025 (8 January to 30 March 2025), around 1 in 4 adults (23%) reported that they would be unable to pay an unexpected but necessary expense of £850.

 Damon Hopkins, Head of DC Workplace Savings at Broadstone, said: “With President Trump’s ‘Liberation Day’ tariffs and growing geo-political tensions, fears around inflation and economic instability are once more rearing their ugly head for UK households.

 “Just as it looked like brighter times were on the horizon and budgets were recovering some financial breathing space, the threat of rising prices is back. This is reflected in the spiking proportion of adults now citing increases to their cost of living – on par with levels last seen two years ago in May 2023.

 “It suggests longer-term saving for later-life may once more take a back-seat further increasing concerns around the adequacy of pension savings that millions of households need to build up for a comfortable retirement.

 “In this climate, employers have a vital role to play. Comprehensive financial education - covering everything from everyday budgeting to long-term savings - can provide employees with the tools and confidence to navigate uncertainty.”

  ONS Data Cost of Living 2025