Equifax has revealed that over 40% of workers don’t believe they will get a pay rise in the New Year and are worried about their financial commitments
According to the latest YouGov research commissioned by credit information provider, Equifax, almost a third of Southerners (32%) are very or fairly concerned about being able to meet their financial commitments in 2017. The new research also reveals that 30% of Brits think their financial situation will worsen next year; only 15% believe it will be better.
People in Wales are most concerned about their financial commitments in 2017 (46%) followed by 44% in London. Those living in the East of England seem most optimistic, with 72% saying that they are not concerned about the financial situation in 2017.
It is the lower paid workers that feel the least confident about getting a pay rise next year. 53% of those earning £5,000-£9,999 per annum and £10,000-£14,999 per annum do not expect to get a pay rise. Those earning £40,000- £59,999 per annum appear to be the most confident, with 54% expecting to get a pay increase in 2017.
With 41% of Brits believing they will not receive a pay rise in 2017, it is probably not surprising that there is a lack of confidence in the economy as a whole. When asked what concerned them most about their financial situation for 2017, the state of the UK economy came top of the list at 26%, followed by the impact of interest rates falling on savings at 17% and having enough saved for retirement at 12%.
Commenting on the latest research, Lisa Hardstaff, Equifax credit information expert, said: “There’s no question that 2016 has been a significant year for the UK. So it is perhaps not surprising that people are concerned about the strength of the UK economy as we head into 2017. Although it is somewhat unfortunate to see that nearly a third feel their financial situation will be worse next year, it is positive to see that 46% believe it will stay the same. This means they are somewhat confident that they are not going to be in a worse position. 42% are going to review their current financial commitments in a bid to get better deals and save themselves some money.”
According to the new data, it seems that women are less worried about the year ahead than men. 28% of women think that their financial situation will be worse in 2017, compared to 32% of men. Women also appear to be less worried about getting better deals on their finances in 2017 with 38% saying they intend to do this, compared to 46% of men. And 25-34 year-olds seem to be the financially savviest group, with over half (54%) looking to review their current financial commitments in 2017.
And when looking at the different age groups, it is the 18-24 year olds and the 35-44 year olds that are most anxious about meeting their financial commitments, with 42% in each group admitting their concerns.
Nick Hill, Money Expert at the Money Advice Service comments, “If you’re worried about your money, it’s more important than ever to take action. Reviewing your budget and checking in on your spending is a good place to start. You can then think about whether there are any ways that you could find some spare cash and start to save. Saving will mean you have funds available to cover any unexpected costs or price rises. You can start saving small amounts and increase it when you can. For those who have missed a few utility bill payments or worried about debt, it is important to get help as soon as possible. The Money Advice Service Debt Advice Locator Tool will help you find free advice in your area.”
Lisa Hardstaff added: “It is not uncommon to feel anxious about the future when it comes to finances. Anybody who has concerns as we head into a New Year can gain an understanding of their financial situation by obtaining a copy of their credit report. This way they can prioritise payments, close any old and unused accounts and see where they can potentially save money.