L&G: Increase in Britons spending more than they earn

More than five million people in the UK are living beyond their means, a new study has found.

Research by financial services company Legal & General (L&G) showed that the number of people spending more than they are earning has risen by eight per cent.

Inflation and the rising cost of living now mean that just 57 per cent of people have an income that exceeds the cost of bills and debts, reflecting a drop in this figure in every region.

L&G director of wealth customer marketing Jonathan Latham noted that people were increasingly being forced to save rather than spend.

“As inflation takes its toll, the need for investing becomes even greater as digging into reserves looks inevitable for an increasing number,” he said, adding that economic conditions had brought the “end of the ‘spend now pay later’ culture”.

Alliance & Leciester recently found that 29 per cent of Britons do not have any savings.

© Adfero Ltd

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