Emotionally concerned
Emotionally unconcerned
Financially
secure
Financially
insecure
Financially Distressed
Comfortable Cautious
Squeezed Spenders
Financially Immune
14%
25%
25%
36%
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Financially Immune: 14%
For this affluent group of consumers, the cost of living crisis has had no financial or psychological impact on their behaviour, and they have no plans to cut back their spending. Most likely over the age of 45, this cohort are cushioned by high incomes and significant savings accumulated during their working life, providing a financial safety net that was further bolstered during the pandemic from fewer travel and social occasions.
Comfortable Cautious: 25%
‘Comfortable Cautious’ consumers are financially secure, but the rising cost of living is still a concern on an emotional level. Typically comprising middle-to-higher income households, often with children, this cohort are risk-averse and prefer to adopt a considered approach to spending rather than act impulsively. They will consciously look for deals and switch to cheaper brands in order to cut back across some of their spending, but equally they possess the financial means to go ahead with big ticket purchases. For example, most Comfortable Cautious consumers intend to go ahead with their holiday plans in 2022, unlike the Financially Distressed and Squeezed Spender cohorts that are less financially stable.
These consumers are also financially squeezed, yet are largely unconcerned by the rising cost of living. This cohort tend to live in the moment, likely to dip into savings, increase their borrowing, or use buy-now-pay-later schemes to make non-essential purchases as they tend to not let money worries impact their spending habits. Ultimately, as cost of living pressures intensify, ‘Squeezed Spenders’ recognise that making cutbacks and putting on hold major purchases will be necessary, but their carefree attitude makes them reluctant to do so. Typically urban and middle-income, these consumers are a mix of ages.
Squeezed spenders: 25%
Fincially distressed: 36%
Typically under the age of 45, this cohort are financially insecure and intend to cut back across most (if not all) of their non-essential spending. This is a decision based on necessity rather than choice, as low incomes and/or high debt levels leave little room for manoeuvre to manage rising living costs. Already resorting to extreme measures to be able to afford to pay a bill and cover everyday needs, ‘Financially Distressed’ consumers are twice as likely to have used a food bank, taken on additional work, or cut back on meals in the last six months.
For this affluent group of consumers, the cost of living crisis has had no financial or psychological impact on their behaviour, and they have no plans to cut back their spending. Most likely over the age of 45, this cohort are cushioned by high incomes and significant savings accumulated during their working life, providing a financial safety net that was further bolstered during the pandemic from fewer travel and social occasions.
Financially Immune: 14%
‘Comfortable Cautious’ consumers are financially secure, but the rising cost of living is still a concern on an emotional level. Typically comprising middle-to-higher income households, often with children, this cohort are risk-averse and prefer to adopt a considered approach to spending rather than act impulsively. They will consciously look for deals and switch to cheaper brands in order to cut back across some of their spending, but equally they possess the financial means to go ahead with big ticket purchases. For example, most Comfortable Cautious consumers intend to go ahead with their holiday plans in 2022, unlike the Financially Distressed and Squeezed Spender cohorts that are less financially stable.
Comfortable Cautious: 25%
These consumers are also financially squeezed, yet are largely unconcerned by the rising cost of living. This cohort tend to live in the moment, likely to dip into savings, increase their borrowing, or use buy-now-pay-later schemes to make non-essential purchases as they tend to not let money worries impact their spending habits. Ultimately, as cost of living pressures intensify, ‘Squeezed Spenders’ recognise that making cutbacks and putting on hold major purchases will be necessary, but their carefree attitude makes them reluctant to do so. Typically urban and middle-income, these consumers are a mix of ages.
Squeezed spenders: 25%
Typically under the age of 45, this cohort are financially insecure and intend to cut back across most (if not all) of their non-essential spending. This is a decision based on necessity rather than choice, as low incomes and/or high debt levels leave little room for manoeuvre to manage rising living costs. Already resorting to extreme measures to be able to afford to pay a bill and cover everyday needs, ‘Financially Distressed’ consumers are twice as likely to have used a food bank, taken on additional work, or cut back on meals in the last six months.
Fincially distressed: 36%
Emotionally concerned
Emotionally unconcerned
Financially
secure
Financially
insecure
Financially Distressed
Comfortable Cautious
Squeezed Spenders
Financially Immune
14%
25%
25%
36%