Impact of COVID crisis on savings

COVID doesn't impact everyone equally - including financially. In the UK, those under 30, on low incomes and renters are now less able to save while higher earners, homeowners and those 30+ have been able to save more.

The COVID-19 pandemic has impacted different groups of the population to various degrees. Financial consequences of the crisis have been very much at the forefront of public discourse over the past year. It’s now clear that despite government intervention to try and minimise the financial impacts on the British people, some groups have suffered more than others.

Recent data from the Office for National Statistics - Opinion and Lifestyle Survey reveal how people’s ability to save money for the year ahead has changed due to the COVID crisis. 

People with a household income below £20,000, living in rented accommodation, and under 30 years of age reported substantial decreases in their ability to save money for the year ahead. Meanwhile, other population groups have reported an increase in their ability to save money compared with just before the pandemic. In particular, higher earners (income above £20,000), homeowners, and those aged over 30 years report having saved more money for the future.