Lockdown UK: Millennials worst-hit generation while those over 65 fare best financially
Coronavirus has forced many families to adapt financially as a new normal took hold of the economy. Throughout 2020, more people than ever applied for state support through Universal Credit and other new schemes to stay afloat and on top of this, others may have had to seek help from borrowing from family or taking out costly credit deals.
Young adults, even where high cost credit is not needed, are continuing to struggle with their finances, as additional research from Fidelity International found that recent events have forced up to 78 percent of people in their 20s to dip into their savings to cover day-to-day expenses, compared to 60 percent for the general population.
Maike Currie, an investment director at Fidelity International, commented on these findings while providing suggestions on what struggling consumers could do: “Months of uncertainty have left many households facing very real financial challenges, with little choice but to rely upon their savings to cover the cost of daily essentials.
“The disruption caused to financial routines will not only have seen them forced to sacrifice savings goals but caused significant stress and anxiety – no-one likes the idea of dipping into their emergency funds.
“If you are in the position of having to rely upon your savings, it’s important to review your overall financial position before you make any decisions.
