More than half of UK adults (52 per cent) are feeling positive about their finances going into 2024, research by Aegon has shown.
According to the research, just under two in five (38 per cent) are feeling negative about their finances in the year ahead.
However, two years on from the start of the cost-of-living crisis, “paying for basic living expenses” remains the top priority.
Males (58 per cent) are more likely to be positive about their finances than females (47 per cent).
Those aged 50 to 59 are the most concerned about their finances, with as many feeling negative (46 per cent) as those feeling positive (46 per cent).
Steven Cameron, pensions director at Aegon, said: “As we enter 2024 and look to the year ahead, our research suggests people’s confidence and optimism is returning when it comes to their personal finances.
“For many, this is being bolstered by recent falls in inflation and hopes for further reductions.
“But our research also points to how the cost-of-living crisis and paying for basic living expenses remains the priority for many individuals and their personal finances.”
The research by Opinium, which surveyed 2,000 UK adults in December, found that building emergency savings (32 per cent) and enjoying life (28 per cent) were common financial priorities.
Cameron said: “Since previous research, released in 2022, ‘Building up emergency savings’ has overtaken ‘Enjoying life’ to sit in second place.
“Those prioritising ‘Enjoying life’ has dropped to 28 per cent from 34 per cent over that period.
“Those aged 50 to 59, in the early years of their ‘Second 50’ are less likely to feel positive about finances and a gender divide exists, with females far less likely to feel positive about finances than males.”
When asked if specific events would change how people feel about their finances, almost half (49 per cent) think a lowering of inflation would make them more optimistic.
By contrast, only 6 per cent would feel more pessimistic and around a quarter (26 per cent) said their view would not change, while 16 per cent are not sure.
“Recent drops in inflation are hopefully a sign that inflation can be brought back under control after a tumultuous 18 months,” Cameron said.
He explained those on a fixed income faced a tricky time ahead, including many pensioners despite the 8.5 per cent rise in the state pension from this April due to the triple lock.
“The elephant in the room remains whether the triple lock is sustainable long term,” he said.
“The state pension is a lifeline to millions but is very costly for today’s workers to fund from their National Insurance.
“We urge all political parties to make their state pension intentions clear ahead of the general election. It could have a major influence over voting preferences.”
sonia.rach@ft.com
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