- 63% of Brits are anticipating a very difficult couple of years financially;
- 40% of Brits believe the country will go into recession as a result of Brexit;
- Over half (51%) are worried about the rising cost of living and bills
As a consequence of the vote to leave the European Union, 63% of Brits are anticipating a very difficult couple of years, with 46% concerned that they will be worse off as a result of the decision. Only 18% expect their financial situation will improve.
With 40% believing that the UK economy will go into recession as a result of Brexit, Brits are worried for their finances with the increasing cost of living, rising bills and not being able to save for the future topping their list of concerns.
According to the new survey* commissioned by Gocompare.com, young adults** are the most pessimistic about their immediate financial future: 74% are expecting the next two years to be tough; 65% are worried they will be worse off as a result of Brexit. Only 11% expect to be better off.
Half of the UK adults surveyed expect the cost of living will increase as a result of Brexit. But 42% said they were keen for the Prime Minister to get on with the formal process of leaving the EU. Just under a third (31%) would advise the PM to delay implementing the exit process in order for the UK to negotiate better deals with the EU, while 27% thought the process should be delayed in the hope the decision to leave could be reversed.
Brexit money worries
The survey revealed Brits' biggest financial worries in the next two years:
1. The rising cost of living/bills (51%)
2. Not being able to save enough (29%)
3. Not being able to find enough work (17%)
4. Not be able to save enough for retirement (17%)
5. Losing my job (15%)
6. Maintaining my mortgage/rent payments (12%)
7. Mortgage interest rate rises (11%)
8. Credit card and other unsecured debts (10%)
The rising cost of living was of great concern to all age groups from 18 to 65 plus. Young adults were the most worried about their inability to save enough (51% compared with 29% for all adults). And more than twice the number in this age group (41% compared with 17% for the total population) were worried about not being able to find enough work.
The Brexit decision had been the trigger for 13% of people surveyed to review their finances to see where they can save money (22% for young adults).
Savings on essential outgoings and bills
When asked where they will look to make savings on their essential outgoings and bills - the top three cost cutting areas were food shopping (43%); TV, mobile, internet and home phone (34%), and gas and electricity bills (33%).
Other key areas for savings include:
- Petrol and other transport costs (25%)
- Car insurance (21%)
- Credit card and loan interest payments (20%)
- Mortgage or rent costs (12%)
Tom Lewis, director of money, protection and utilities at Gocompare.com, commented: "While it's too early to judge the financial impact of Brexit, the decision to leave has already sent shock waves through the markets. So understandably many people are concerned about the effect Brexit will have on their wallets and future financial security.
"The process of unravelling the UK from the EU will undoubtedly take years, but in the meantime, if people are concerned about their personal finances there's action they can take to ensure their money is working hard for them.
"It's a good idea to review your finances regularly to make sure that you are not overpaying your household utility bills and paying more than you need to for insurance policies and other financial products. A comparison website, like Gocompare.com, can help make your money go further by making it easy to compare prices and product features for a wide range of financial and household services."
For more information on switching a range of everyday financial products and services visit Gocompare.com.
Notes to editors:
*On 18 July 2016, Bilendi conducted an online survey among 2002 randomly selected British adults who are Maximiles UK panelists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
**Young adults aged 18 to 24 years old.