Of those, a third attributed this to a reduced income and almost one in five (19%) had a lack of savings to fall back on in the pandemic. Other reasons included taking on more debt (13%), and not being able to afford their living costs (11%).
When thinking of the future and being able to respond financially to a change in life circumstances, just one in six (16%) say they feel very financially resilient, with men (20%) more likely to say this than women (12%).
To help improve financial resilience in the UK, Royal London has launched its Changemakers programme, committing £1.5 million over three years to support social enterprises that have created bold and innovative ideas to improve resilience and protect against life shocks, such as illness, divorce or change in income.
Sarah Pennells, consumer finance specialist at Royal London, said: “We know that the pandemic has affected millions of people’s financial resilience and that’s why investing in these inspiring Changemakers is so important. Each social enterprise has either direct lived experience, or experience by association, of the problem they’re trying to solve and this comes with the passion to make a difference. We believe that these social enterprises can create real change and innovation is at the heart of it. We are delighted to support people who are looking at new ways of improving financial resilience.”
