However, for some the exact opposite was true as they became furloughed, retrenched or suffered other financial losses. Taking part in National Happiness Month, SmileDirectClub surveyed how the pandemic affected people’s financial decisions, career changes and happiness.
SmileDirectClub is an oral care company and the first medtech platform for teeth straightening and commissioned this study to get insight on the smiles of Brits.
The study found that those who were able to save substantial amounts of cash and worked remotely had a far higher Happiness Index.
The majority of this group were Gen Z and Millennials, who utilised the extra time they save from avoiding their daily commute to start a side business, educate themselves and strengthen their careers.
15 percent of 18-34 year-olds were able to secure their dream job, 14 percent opened a new business venture and 13 percent got promoted.
The national monthly savings average sits around £467 per month, but during the pandemic this age group saw an increase to £757 saved every month due to working from home.
In stark contrast, the study also found that people aged over 55 were on the opposite side of the savings spectrum, putting away only £253 per month.
Some are inclined to say that this saving statistic was influenced by certain age groups being affected by furlough more than others.
In actual fact, for the majority of the pandemic the most furloughed age group were those between 25 and 34, which is generally older Millennials.
Additionally, an HMRC study also found that women employees aged 41 to 58 were the least likely to be furloughed while the most likely to be furloughed were employees aged 17 specifically.
So, how did this age group manage to accumulate so much savings during an economic downfall?
The pandemic forced many people to re-evaluate, and for the majority of Gen Z and Millennials this meant properly assessing their finances for the first time since they have been employed.
Additionally, the majority of expenses for this age group revolves around things that were closed during the pandemic, such as concerts, parties, events and meeting up with friends.
As a result, they simply moved the money to their savings because they had nowhere else to put it.
However, there also comes a stark warning for this age group as once all of their favourite expenditures return they are more likely to overspend and burn through the savings they accumulated quicker than other age groups.
Saving habits during the pandemic also enjoyed a compounding effect due to the fact that the majority of people had clear cut goals and milestones they wanted to achieve by the time the lockdowns ended.
SmileDirectClub revealed that the top milestone moments that were hit included:
1. Moving Home
2. Had a career change
3. Started a business
4. Bought a property
5. Got promoted at work
6. Separated from partner / got divorced
7. Secured dream job
8. Fell pregnant / had a baby
9. Got engaged
10. Found love
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