Nearly one in 10 people say outgoings are £500 a month more today

Nearly one in 10 people say their monthly outgoings are at least £500 higher than a year ago, survey finds as cost-of-living crisis grips UK

  •  Retired people have on average seen their living costs soar by £163 per month
  •  One in seven of those with extra living costs are struggling to pay for heating
  •  The survey of 4,000 people also found 10% are finding it difficult to pay for food

Nearly one in 10 people say their monthly outgoings are at least £500 higher than a year ago, a survey has found as inflation soars. 

Pensioners are also looking at higher costs as they see their spend on food and bills go up by an average of £163 per month, according to the research involving 4,000 people.

One in seven of those with extra living costs said they are struggling to pay for heating and 10% are finding it difficult to pay for food, pensions and retirement specialist LV said.

The cost of living crisis and some people going out more post-Covid is also likely to put a further strain on incomes.

Nearly a fifth, LV= said, have also cancelled subscriptions to help make ends meet as the streaming giant Netflix reported its first fall in subscribers this week. 

And food producers like Nestle has also warned today that more price rises could be on the horizon as it battles inflation that has already caused consumers to pay more for the basics like spaghetti, milk and wine. 

People who are retired meanwhile have typically seen their living costs increase by an average of £163 per month, pensions and retirement specialist LV said (stock image)

 Source: LV= asked 4,000 people

It emerged this week that streaming giant Netflix has experienced an unexpectedly large fall in subscribers, with the drop stemming in part from the impacts of the war in Ukraine.

The firm announced that its customer base fell by 200,000 between January and March this year and it could fall by a further 2million between this month and June. 

A third of people also told LV= they are saving less in order to get by and 8% are taking on more debt.

One in 20 has also asked friends and family for help.

Three in 10 people meanwhile told the LV= survey they are having fewer holidays and meals out.

Clive Bolton, managing director of savings and retirement at LV=, said: ‘Inflation fears have been rising since summer and rising prices pose a problem for retired people.

‘Those on fixed incomes will see the purchasing power of their incomes fall.

‘Those drawing an income from their pension fund may be forced to withdraw more money from their pension fund than they anticipated and increase the risk of running out of funds in retirement.

‘Rising fuel bills mean many are making cutbacks to other areas of expenditure, while many are dipping into savings, taking on extra debt or borrowing from family to make ends meet.

‘One of the big issues people now face is how to also protect the future spending power of their savings being eroded by rising prices…

‘One solution could be smoothed investment funds that are designed to reduce the volatility of investment markets and produce real returns that over the long term.’

He said a financial adviser can help people to identify the most suitable funds.

Nestle who make KitKat and Shreddies also said today it has already increased prices by more than 5% over the first three months of 2022 but will look to further hikes.

Mark Schneider, chief executive of the Swiss food group, said: ‘Cost inflation continues to increase sharply, which will require further pricing and mitigating actions over the course of the year.’

Nestle saw sustained customer demand despite the jump in prices, Mr Schneider added.

The group reported a 7.6% increase in organic sales over the three months to March, driven by a 5.2% increase in pricing and 2.4% rise in volumes.

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