Hodge launches whitepaper on how cost of living crisis is affecting financial planning

Hodge has released an in-depth survey into how the rising cost of living is affecting the everyday spending and saving habits of people in the UK.

The study questioned 1,000 people aged between 21 and 55, as well as those aged 55 and over, on varied incomes and found nearly all were concerned in some way or another about the increasing cost of living.

Some of the key findings include:

  • 73% of those surveyed said they’ll curb social activities
  • 56% will use savings to survive the cost of living crisis.
  • Almost a third say the increase in energy bills will impact remortgaging decisions.

The Cost of Living whitepaper examines how people are spending their money, what they are cutting back on, and how confident they are in managing their finances during these turbulent times.

It also examines how Brits are saving – whether they’re putting more away for a rainy day or channelling the money they would usually save in another way, and in order to manage day-to-day costs.

Katie Johnson, managing director of savings at Hodge, said: “We felt it was important at this time to take a close look at how our customers are dealing with their finances, as prices everywhere from the petrol pumps to the supermarket continue to increase.

“What we found is no one is immune to the rising cost of living, no matter their age or income. People are also holding off adding more to their savings pot, despite interest rates being more attractive than they have been for a few years.”

“At Hodge, we help customers with both savings and mortgages, so it’s vital we know how the wider economic landscape is affecting our customers.

“Our Cost of Living whitepaper answers the important questions that will help us as a bank do all we can for our customers, create products for our future customers, as well as educating brokers and intermediaries about the discussions they should be having with their clients to help them during the next few tricky years.”

“We will all deal with it in our own way, but getting the right professional help and advice at times like this can be vital in helping customers come out unscathed and to remain financially healthy.”

This is the third white paper Hodge has produced for its intermediary partners with the aim of using its research to help and educate brokers and independent financial advisers about pinch points their customers might be facing. Previous themes have included retirement and family money management.