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Why did Britons save almost 4bn as a result of the Omicron variant? #FridayReads

Why did Britons save almost 4bn as a result of the Omicron variant? #FridayReads

Friday, 06 May 2022 -

New research[1] has highlighted Britons saved almost £4bn[2] as a result of the Omicron variant disrupting social plans during the festive period.

The identification of the new variant and the subsequent surge in positive cases caused many to put festive plans on hold this year, resulting in 35% of people saving money, with an average saving of £212 per person. 1% of people cancelled bigger plans over Christmas, resulting in savings of over £1,000. Overall UK adults saw total savings amount to approximately £4bn.

Variant’s emergence
The data also revealed that those aged between 25 and 34 saw the biggest savings, with 41% saying they had saved money on socialising during the festive period following the Omicron variant’s emergence. Previous research[3] in 2020 found that 18 to 30-year-olds were the most likely to be saving more money as a result of the pandemic, with almost 48% saying they had put more money aside following the first lockdown.

With the cost of living impact becoming ever more prevalent as we move through 2022, many will no doubt be thankful to have saved a few extra pounds from the festive season. Being in control of your finances enables you to manage them more effectively, and eliminates the pressure of worrying about money as you have the sense of security that comes with knowing how much you have available to spend.

Financial difficulties
There will always be times throughout the year when expenditure will vary, so having well managed finances will allow you to be prepared, regardless of what changes may happen along the way. If you have money set aside for emergencies, you’re far less likely to experience financial difficulties or have to borrow at a high interest rate if things go wrong or your circumstances change. Knowing you’ve got some money tucked away might help you sleep better at night too.

Saving regularly is a good way to build up an emergency fund. You’ll find that if you get into the habit of saving each month your savings will soon mount up. There isn’t a one-size-fits-all approach to emergency savings because everyone’s expenses, income and priorities are different. Your end goal ideally should be to set aside between three to six months of your expenses.

Source data:
[1] YouGov research conducted for Quilter. Total sample size was 2069 adults. Fieldwork was undertaken online between 23rd – 25th December 2021. The figures have been weighted and are representative of all UK adults
[2] YouGov research conducted for Quilter. Total sample size was 2069 adults. Fieldwork was undertaken online between 23rd – 25th December 2021. The figures have been weighted and are representative of all UK adults. Total savings calculated by Quilter using median savings figure. Total UK adult population calculated by Quilter using ONS estimated population data Estimates of the population for the UK, England and Wales, Scotland and Northern Ireland - Office for National Statistics (ons.gov.uk).
[3] Survey conducted by Toluna on behalf of Quilter between 27-30 April 2020 with 1014 UK adults
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