Savings to be spent: UK households prepare for the year ahead

It’s undeniably difficult for consumers in the UK. Despite recent news being promising in terms of vaccine rollout rates and economic recovery, families and households across the country are still facing financial uncertainty at large – and connected industries are suffering still as a result.

There’s a silver lining for many, though, and it comes in the form of savings. With so many unknowns in terms of work security, lockdown dates and the potential for a third wave of the virus, adults who may otherwise have been more casual with their disposable income have instead put that money away.

A savings wave

According to analysts, UK families and adults may be gearing up to release a spree of savings into key markets such as the retail industry. Forecasts of this vary, but financial experts report their predictions for this to lead to an increase in consumer spending in 2021 of as much as fifty billion Pounds. According to these experts, as many as 46% of UK citizens have improved their savings throughout 2020 and the start of 2021, leading to an estimated surge in saved cash of £192bn.

And there’s an appetite to spend, too. Polling on adults in the UK shows that, on average, UK households are looking to spend that money in 2021 as the lockdown measures steadily ease according to the government’s plan.

Spending plans

With so much of the previous year defined by drastic lockdown measures, it’s unsurprising to hear that many UK families and adults plan to spend parts of their savings on staycations and overseas travel. The aforementioned statistics, provided by CEBR and Scottish Friendly, tell us that as many as a third look to travel in the months ahead. A similar amount plan to spend parts of their savings enjoying restaurants and cafes in-person once lockdown eases; an understandable response that may be linked to the efforts by the UK government to advertise and support food and drink establishments via their Eat Out to Help Out scheme.

A future still unclear

The Everyday Loans team would like to take the time, however, to remind readers that it’s best to take a measured approach to using the savings you may have gathered in the previous year. Despite the fact that the government now has a tiered lockdown easing plan, complete with dates for the lifting of each stage of lockdown, it’s still unknown how our vaccine rollout will finish – or if there will even be a third wave for the UK.

Because of this, it’s recommended for adults and families across the country to be conservative with the money they have available to them. Safety nets remain as valuable financially as they ever were and it’s a sound plan to have contingency plans prepared on how an adult or household might secure money if the unexpected need arises.

A brighter year ahead

With fair warnings stated and a breakdown of consumer spending plans described, it’s also important to state what is on the minds of every adult in the UK: hope for 2021. The UK is seeing excellent results from its current vaccination rollout, with cases dropping daily and new vaccination centres being arranged each week. After a particularly challenging year, there is real hope in the minds of adults and families across the country.

With a little luck and the continued efforts of our commendable government and healthcare professionals, the UK looks set to see a final emergence from the rigorous but necessary lockdown restrictions imposed on it for so long. Stay safe, wear your masks and keep an eye on the news – there is undeniably light at the end of this tunnel.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes