Standard of living expected to fall

CLOSE to two-thirds of people expect their standard of living to drop over the next six months.

In addition to this, just over half of consumers plan to reduce their spending this Christmas, according to research from investment company AXA Financial.

Just 1% plan to increase spending over the festive season, according to the findings.

Almost a fifth of people surveyed said their future standard of living will depend on what the budget holds while those aged 65 or over are most pessimistic, with three-quarters expecting a fall in living standards.

Of those aged between 18 and 25, 57% said they expect their standard of living to fall in the next six months.

Those most apprehensive about what might be contained in the budget are in the 25 to 34 year age group.

The survey of 1,000 consumers showed that those aged between 35 and 44 are most likely to reduce their Christmas spending, with 55% confirming this. The group least likely to cut spending this Christmas are those aged over 65.

Director with AXA Financial David Walls said: “It looks like being another difficult Christmas for retailers with the added uncertainty of a particularly tough budget and the arrival of the IMF which could delay the start of spending by many.

“However, the good news is that a significant proportion of the population (39%) is determined to celebrate Christmas and maintain spend despite or even because of all the doom and gloom.”