Across the pond in the United Kingdom, increasing costs of living are eating into the savings of millions of Brits. Consequently, they live on edge financially, in spite of their essential employment. This phenomenon is most vividly impacted when looking through the eyes of a few Britons. Andrew, a writer in his mid-30s who lives in Essex, has built up £30,000 in a workplace pension. However, soon he’s faced with the inability to save anymore as costs keep piling up.
Kira, 28, communications manager, London I have a pretty complicated history with money. She has only £1,500 in savings—enough for barely one month’s expenses. She has dealt with the financial fallout from debts built up during the pandemic and now deals with skyrocketing rental prices. Kira looks at the growing wealth gap her generation has to contend with. She notes that her mother was able to purchase a home and raise two children on an equivalent income at her age, but that is not feasible for her cohort in today’s economy.
The financial crisis isn’t limited to just Kira and Andrew. Carrie, a customer services worker in her 40s from Manchester, has not disclosed her specific savings but represents many who navigate a tough economic landscape. Neal, 43, an IT consultant from North Yorkshire, says he has enough savings (£6,000) to cover four months’ costs. He still looks askance on his long-term financial security.
Robert, 40, an insurance underwriting consultant from Birmingham, has been aggressive enough with his savings that he feels secure through frugality. As of this writing, he has about £95,000 in his emergency fund. That’s enough to pay for his basic living expenses for nearly three years. His intense, disciplined approach to money has come at a cost. He confesses that he lost all these enriching experiences in his most productive years.
Marceline, 32, a local government employee in Essex. She prefers to spend her discretionary dollars on adventurous experiences such as travel and events. Winner’s strategic spending decisions are a microcosm of a larger epidemic as young professionals start to have more fun while the economy remains topsy-turvy.
30-year-old Ryan from Glasgow operates under the motto “Why Save?” He works full-time for a bank but has saved up £0. He describes his financial situation as dire, stating:
“It’s not for lack of trying, but some months I even go without food; all my money goes towards bills. I’ve got no social life and can’t afford to do anything for fun.”
His situation brings to light the challenging choice that most people must make between affording day-to-day living while saving.
This pair in the UK, both earning national median wage and having saved up £250,000 in pensions do represent a much more secure picture. They struggle with monthly bill payments over £2,800. Their journey proves that even people who have a lot of savings can still experience the pressure of long-term costs.
Jon is a 45-year-old retained firefighter from Shropshire. He’s earmarked part of his personal fortune for that purpose, though he has declined to provide details on how much. His experience highlights how everyone, including the most modest earners, place their long-term financial goals above their short-term spending struggles.
The experiences shared by these individuals reflect the broader impact of rising living costs on savings across various demographics in the UK. And with inflation outpacing wage growth across most jobs, the hurdles are likely to remain for the foreseeable future.
Her feelings mirror all those who are stuck in the perverse choice between losing their doctors and their homes.
“I’ve struggled to save due to increasing rent and other living costs. I’m in an irritating situation, as I work in the arts and wouldn’t be able to find an equivalent job outside London unless I’d be taking a significant pay cut.”
Her sentiments resonate with others who find themselves trapped in similar situations.