Britons embrace austerity

LONDON | More than one in two adults (56%) said they planned to cut back on their spending. Women were more prone to this than men (59% to 50%). More than one in three people (37%) wanted to try to save more money each month whilst 36% said a key resolution was to cut down their debts. The research showed an attitude-divide between the young and old with the under 35s top financial resolution focusing on saving, whereas the over 35’s top priority was to cut back spending and to reduce debt.

As many gear up to the prospect of a tough 2012, three in four Britons (75%) have made financial resolutions for the New Year, according to financial planning website rplan.co.uk

Andy Creak, Managing Director at rplan.co.uk, commented:

“The last year has presented most adults with a near-impossible juggling act, many trying to make cut backs on a shrinking disposable income, whilst also trying to put money away to support the needs of family members. We have put tools in place to help people work out in real terms how much various plans, such as getting through university, may cost and we encourage everyone to take a close look at the costs and charges involved in the financial products they hold, as this is an area where meaningful savings can often be made.”

With one in seven adults (14%) saying their household is £500 or more a month worse off in 2011 than they were three years ago, rplan.co.uk asked a UK representative sample of 2,077 adults which financial resolutions they were planning for 1 January.

 

Top 10 financial resolutions for 2012

Resolution                            Percentage

 

Cut back on my spending                                      56%

Save more money each month                                   37%

Reduce my debts                                              36%

Look for a better paid job to boost my income                19%

Ensure I have the best insurance cover available             12%

Cut down what I spend on insurance                           12%

Shop around financial providers so I pay less in charges     11%

Start/take more action with my pension                        9%

Take more control over my investment decisions                8%

Change my bank account                                        6%

 

Among financial plans that didn’t make the top 10 were included paying off my mortgage (3%), supporting elderly parents financially (3%), moving house (2%) and taking out life and income protection insurance (3%)

* The research was conducted by YouGov on 12 December 2011.