• New research shows nearly half of Brits’ savings would run out in just two months or less if out of work
• Nearly a fifth say they’ve had to borrow money to get by, and nearly two-thirds say they’re worried about their finances during the pandemic
• Two thirds of people are spending less in lockdown during the coronavirus crisis than they expected
As the coronavirus pandemic continues to put strain on the economy, new research by HSBC UK shows over two thirds of Brits are spending less in lockdown than they expected - but worryingly, nearly half (49%) of Brits say their savings would only last for two months or less if they were out of work.
Whilst the unique circumstances of lockdown have reduced outgoings for some (such as the costs of commuting), the research highlights the lack of savings to tide people over if they were to lose their job or face furlough.
Fiona McCaffrey, HSBC UK’s Head of Everyday Banking said: “These are difficult times for everyone, not least when it comes to people’s financial health. We have all had to develop personal as well as financial resilience, and as we get used to the ‘new normal’ it’s important to review our budgeting.
“Our research shows the worrying reality that many people don’t believe they can get by on their savings alone if their income is impacted. Now more than ever, it’s important to look at your outgoings to see where you can make changes, and if possible put a little aside should something unexpected happen.”
HSBC UK’s survey found 64% of people are spending less in lockdown, highlighting that there may be opportunities for people to review their expenses and make their money go further. When things are going well, it’s easy to just let things float along - but now might be a good time to try and improve your financial resilience. Experts often recommend having a minimum of three months’ salary saved to cover you should you experience a loss of income or be faced with an unexpected bill such as a car repair, a vet bill or boiler repair.
According to the research, nearly a fifth of people (18%) said they have had to borrow money from friends or family to get by and nearly two-thirds (59%) said they were worried about their finances in general.
Fiona continued: “Our first priority is to help our customers meet the financial challenges many now face. If you’re worried about your finances, there are ways to get support. We’re helping customers get through this period in several ways, including mortgage payment holidays, creating breathing space on other debts as well as introducing some flexibility with finances during this uncertain time.”
HSBC UK’s five top tips to help people manage their financial health during this period:
HSBC UK has a dedicated coronavirus hub, which is regularly updated with frequently asked questions and supporting information.
Helpful HSBC UK Resources: