- Almost half (45%) of UK adults have or will ask for a pay rise this year to meet the rising cost of living.
- A quarter (24%) plan to use any expected bonus to pay household bills.
With the cost of living crisis set to worsen, Wesleyan’s research also found that nearly a quarter (24%) of UK adults who expect to receive a bonus this year will use the money to meet day-to-day costs, such as soaring energy bills or groceries.
Younger people are those most likely to ask for a boost to their pay packets, with nearly three in five (59%) of those aged 18-34 asking for a pay rise. This compares to just over a quarter (28%) of those aged 55-64.
The research also revealed that people are planning to tighten their purse strings with just over half (53%) of those expecting a bonus saying they would rather save it this year than spend it. Nearly a quarter (23%) will save the money into a standard or savings bank account, just under a fifth (19%) will put the money into an ISA and one in ten (11%) will invest the money in stocks and shares.
Nathan Wallis, Chief of Staff at Wesleyan, said: “Following the Governor of the Bank of England’s call for restraint, our data shows that many people will be doing the opposite and asking their employers for a financial boost.
“The fact that so many plan to use their bonus money to meet day-to-day costs shows just how much of a squeeze people’s finances are already under. It’s not unusual for people to save some of their bonus for longer-term needs such as retirement; but this is unlikely to be the case for many this year. It also means that the many people who built up a healthy savings pot during the pandemic are now dipping into it.
“In such a challenging environment, reviewing your finances will be key. People need to remember to work out what they can still afford to put towards their longer-term financial goals, making sure that this money is working as hard as possible – for example, by being invested in a tax-free Stocks-and-Shares ISA.”
Findings are based on consumer research of 2,000 UK adults, conducted by 3Gem between the 1st and 4th of February 2022.