The majority of people in the UK are feeling positive about their finances for the year ahead, a new poll has found, despite paying for basic living expenses remaining a top priority.
According to Aegon, 52% of UK adults say they feel positive about their finances, compared to 38% who feel negative about their financial situation in 2024. Those aged 50 to 59, in the early years of their ‘Second 50’, are less likely to feel positive about finances, while a gender divide exists, with females far less likely to feel positive about finances than males, the findings show.
Two years on from the start of the cost of living crisis, ‘paying for basic living expenses’ remains the top priority for the year ahead (37%). Building emergency savings (32%) and enjoying life (28%) were also common financial priorities, although the latter has dropped from 34% in late 2021.
Nearly half (49%) of those surveyed think a lowering of inflation would make them more optimistic, compared to just 6% who said they would feel more pessimistic and 26% who believe their view would not change.
Steven Cameron, pensions director at Aegon, said: “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.”
Aegon said those on a fixed income continue to face uncertain times, including many pensioners despite an 8.5% rise in the state pension from this April, with debate around the sustainability of the triple lock guarantee continuing.
“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,” Cameron added.
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