Finance News

A Third of Higher Earners Switch to Cheap Supermarkets to Save Money

The second consecutive recession has bitten hard and a clear sign is when it is starting to seriously affect the more affluent. One third of the high earners have switched to cheap supermarkets in an effort to make ends meet due to the recession according to a new report by Axa UK.

The survey by Axa Big Money Index, which looked at 2,089 British adults, revealed that 32 per cent of middle class people in the UK aged 50 to 60 are switching to lower cost supermarkets such as Lidl and Aldi to save money. These people are mortgage free and have a high disposable income compared to those less fortunate. Other steps being taken to save money being taken are to switch to own brand foods, which are often quite a bit cheaper.

1 person in 7 can’t see a time when their income will cover their outgoings. 16 per cent of people in the survey believe that their financial situation won’t improve in the future; which is chilling reflection of the UK public’s financial confidence.

People are trying lots of different ways of saving money, including cutting down on takeaways, alcohol and 28per cent are cutting down on the amount of fuel used by using their utilities less.

Cheryl Toner, marketing director at Axa UK said: ‘A pattern of relentless economising has set in since our Big Money Index surveys began in early 2011, and it’s showing no signs of easing.’

‘It’s alarming to see that even those deemed untouchable, the more comfortable sectors, are now feeling the pinch. Severe cutbacks are evident almost regardless of affluence levels.’

British households have been feeling the sharp end of the recession for a long time, and the pinch just seems to be getting tighter as utility bills rocket, along with fuel and mortgage costs; Salaries can’t go up enough to keep up.