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Holidays are Coming!

We simply can’t believe how quickly this year has gone by! And regardless of whether we’re prepared or not, Christmas is just around the corner.

Whether you’re an avid pre-planner or an eleventh hour adrenaline junkie rushing round the shops, one thing is certain: Christmas can be a costly time for everyone. From the big Christmas dinner to decorations and presents for family and friends, it can be a financial drain – albeit a fun one! 

And with big spending, comes the need a need for careful planning and budgeting to make sure that the festive period doesn’t bring any unnecessary financial stress.

Approaching Christmas

At My Pension Expert, we have a keen interest in money and how people manage it – so we’ve conducted a survey amongst 1,133 UK adults aged 40 and over to understand how they’re looking after their spending this Christmas.

According to our research, a fifth (20%) of those surveyed have already looked into the best ways to score a Christmas deal, whilst 43% have set aside a specific budget to control their spending. 

Given the economically challenging year we’ve had it’s unsurprising that so many people are keen to search for the best deals to help their money go a little bit further. However, our research also suggests that some people might be looking into alternative methods to manage a more stretched budget.

Spending Worries

Indeed, according to our research, 46% of Britons aged 40 and over are finding financial preparation for Christmas has become more challenging as a result of economic issues like rising interest rates and high inflation. 

And it seems that Britons are exploring other financial methods to ease spending pressures at Christmas. For example, 10% of our survey respondents say they are taking on debt in order to pay for Christmas. Of course, debt, for example, is no bad thing, and can help people to achieve their financial goals. Problems present themselves when the debt is not managed correctly and spirals out of control. 

Another, slightly more problematic trend is that people are cutting down, or pausing their pension contributions so they have more to spend over Christmas. 6% percent of people over 40 reported pausing their pension contributions in order to pay for Christmas. This is particularly worrying, as it could result in under saving in the long term, and negatively impact their retirement prospects. 

Of course, nobody should ever feel pressured to risk their financial stability in order to survive the holiday season. Because of this, festive planners would be wise to carefully weigh their options before acting on these financial matters– and we’re here to help!

A helping hand

For those who are worried about their finances, there are resources available to help. As scary as they sound, debt charities like Step Change from Citizen’s Advice can help those struggling with debt get to grips with their finances and keep them under control.

Elsewhere, advice, such as our team from My Pension Expert, are here to help when it comes to managing your future finances. So, if you’re concerned about how your pension plan will fare over the festive period, we can conduct a thorough review and make personal recommendations to suit your current needs and future goals. 

The festive period can be busy – and expensive! But financial worries should never dampen the festive spirit. Support, such as MPE’s team of advisers, can help to ensure you’re on top of your future finances and remain on track for the retirement you want throughout the festive period.