Over half of adults in the UK are feeling positive about their personal finances in 2024, research reveals.
Despite the cost-of-living crisis and rising energy bills leading to one in five missing a payment in 2023, 52% said they are optimistic about their economic position.
On the other hand, nearly two-fifths (38%) of the 2,000 respondents surveyed by Aegon were feeling negative about their money matters, with males (58%) more positive than females (47%).
Those approaching retirement age were most likely to feel pessimistic about their personal finances, with the same number (46%) of people aged between 50 and 59 feeling positive, as those who felt negative.
Further, a light was shone on what households are putting first when budgeting too, and paying for basic living expenses is the most common financial priority.
More than a third (37%) are prioritising that, while a third (32%) will prioritise building emergency savings. Just over a quarter (28%) of the UK think enjoying life is what they will prioritise financially.
Looking ahead, 49% said they would feel more optimistic if the level of inflation lowered, which dropped more than expected at the end of last year.
Triple lock remains ‘elephant in the room’ on UK’s personal finances
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.”
“Since [our] previous research, released in 2022, ‘building up emergency savings’ has overtaken ‘enjoying life’ to sit in second place. Those prioritising ‘enjoying life’ have dropped to 28% from 34% 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.”
Cameron added: “The elephant in the room remains whether the triple lock is sustainable long term. 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.”
