The Cost of Living Crisis is having an impact on more than just our pockets. It is affecting our mental health too.
Some would have us believe that the cost-of-living crisis is almost over in the UK. We have been told that the inflation rate is going to drop, the cost of essentials and non-essentials is going to decline, and it is going to be much easier to achieve financial stability. This is predicted to occur in the start of 2023 (1).
Yet, there is no guarantee that the crisis will be over this year. Unfortunately, some research suggests that we have not even reached the worst part of the cost-of-living crisis, and that the average household will be £2100 worse off by the end of the next financial year (2).
This explains why so many adults are experiencing anxiety when they think about the cost-of-living crisis. Our infographic shows that this is impacting every age group. High levels of anxiety can be seen in 19% of over-70s, 24% of 50-69-year-olds, 33% of 30-to-49-year-olds, and 25% of 16-to-29-year-olds.
The consequences of a worsening financial crisis will look different for each generation (3). Young adults face a housing crisis that may prevent them from owning their own home or even renting, parents of young children face low wages and high expenses, meaning they may not be able to provide for their family, and older people are having to delay retirement to save more money (4).
References
[1] When will the cost of living crisis end? How UK energy prices and inflation could fall, and payments explained https://inews.co.uk/news/cost-of-living-crisis-when-end-uk-energy-prices-inflation-fall-payments-explained-2082440#:~:text=When%20will%20inflation%20go%20down,continue%20to%20rise%20so%20quickly.
[2] Cost of living: Worst yet to come with average household £2,100 worse off, think tank warns https://news.sky.com/story/cost-of-living-worst-yet-to-come-with-average-household-2-100-worse-off-think-tank-warns-12782869
[3] Millions to delay retirement due to cost of living crisis https://www.actuarialpost.co.uk/article/millions-to-delay-retirement-due-to-cost-of-living-crisis-21519.htm#:~:text=Research%20from%20Legal%20%26%20General%20Retail,%2Dtime%20(9%25)%20roles.
[4] See the guide on alcohol rehab Dorset.