– Richard Lloyd, Which? Executive Director
Our research paints a gloomy picture of worried and pessimistic consumers, with a majority expecting their household budget to get even tighter than last year.
People have as little money to spend now as they had at the start of the recession four years ago, with many simply unable to prepare for unexpected costs or for their retirement.
There's no doubt that the big squeeze has turned into a long squeeze. The assault on real incomes is unlikely to change for the better soon, with consequences not only for individual consumers but also for economic recovery.
A poll of more than 2,000 UK adults has found that over 50 per cent of people who have yet to retire, are not paying into a pension.
- From this number, more than 40 per cent of people said they could not afford a pension
- Nearly two thirds of those still working do not feel confident they can live comfortably in retirement
- More than a third have increased their total level of debt in the past month
- Seven million households cut spending on everyday essentials
- Four million households used credit to pay for food
Almost six million households dipped into their savings to cover monthly household spending in the last month, a report has found.
According to Which? "the big squeeze had turned into the long squeeze" with many consumers are unable to save, too worried to spend and unable to cope with financial shocks.
Half the people surveyed, who have yet to retire, say they are not paying into a pension.
And more than a third of people say they have no intention in saving for their future.