TThe UK's economic performance in 2024 was mixed to say the least. Inflation was below the 2% target in the fall and above annual wage growth of 5.2%, but it is on the rise again. Meanwhile, forecasts for the pace of interest rate cuts have been revised downwards, with businesses warning of an impending slowdown in activity. As the end of the year approaches, people across the country are sharing their financial expectations and concerns for the coming year.
I'm about to go on maternity leave, and having been saving aggressively over the past few months, I'll be able to make ends meet without too much financial stress even if my income drops to Standard Maternity Allowance (SMP). I hope my husband and I budget accurately enough so that we can. We've made a huge effort to live within our means and pay off our debt, so we'd like to take a few more months off with our newborn without risking using all our savings. Masu.
Despite the government increasing the SMP by £3 for April. [a week]This is still less than half the national minimum wage and is likely to be around £145 a week before tax, national insurance and pension contributions, significantly lower than what we have been used to. Masu.
Given that we often hear about inflation and exorbitant childcare costs, you may wonder whether you will have enough money to pay for childcare when you return to work, or whether you are at risk of having to return early due to unexpected expenses. I'm very worried that there is.
For many Millennials, having children is no longer economical. I know we are the only couple in our friendship group who wants to and is able to do it.
Ashley, 33, marketing specialist from Leicester.
“It would be nice if we could pay off the debts caused by the coronavirus pandemic.”
I want to finally pay off the terrible debt I incurred during the coronavirus pandemic. Or you could move it into an “affordable” fixed income product. Gas central heating will be available again. To buy a passport.
James is a homeowner living in Birmingham and working in the IT field.
“I hope I can buy a small house.”
I'm hoping house prices will crash and I'll be able to buy a smaller house with the money I have without being locked into the risk of equity extraction or horrible maintenance costs.
My economic concern for next year is that investors will continue to be allowed to buy up smaller homes in order to trap less well-off people in perpetual debt to landlords and freeholders.
It is impossible to maintain a healthy demand economy if most of your income goes towards housing costs. It is not healthy for society to have so much homelessness, resentment, and suffering. Building more homes to be bought up by domestic and foreign exploitative investors accomplishes nothing.
Rose, retired, from Cornwall
I really need a promotion. I'm happy in my current role, but a promotion is the only way I can secure a raise that will nearly cover the increased cost of living. There is a lot of competition within the ranks of civil servants at the delegating grade, as they all hold the same position, and there is a clear lack of decent roles advertised outside Whitehall.
I worked hard to secure a sufficient down payment to purchase an apartment earlier this year, but service fees are a major concern.
After tax, student loans and essential living expenses, I'm left with around £800 of disposable income. That's £600 after putting it away for long-term savings. The public sector salary increase this year was 5.45% for me. I earned about £50 extra per month. However, due to increases in income tax, council tax and utility bills, as well as increased student loan contributions, my monthly income is still around £60 worse than it was this time last year. And this doesn't take into account the reduction in income due to other inflationary pressures or the freezing of tax brackets.
I started to feel like a lemon that had been squeezed too many times. If this continues, the juice will run out.
Civil servant in his 30s living in Manchester
“The end of remote work means costly travel.”
Ideally, we would be able to move back south without compromising too much on the quality of our home and neighborhood.
[My concern for next year is that] Potential clients are increasingly asking for hybrid or on-site work. Although my immune system is compromised, I have managed to work fully remotely since the pandemic. But now my clients seem to want everyone on site, and this is impacting my ability to make a living.
Andy Hilton, 57, a freelance IT consultant and blood cancer patient from Coventry
“I'm worried about President Trump's impact on the global economy.”
I'm looking forward to lower interest rates – mortgages are high enough – and I want to look at ways to get more money through savings.
I am generally satisfied with my financial situation, have zero debt other than my mortgage, and have low monthly credit card usage.
What are my concerns? The impact that President Trump's policy ideas may have on the global economy. The Bank of England becomes more sensitive to inflation and raises interest rates. The fact that profiteering by utility companies appears to be rampant. And the knock-on effect of National Insurance obviously increases for employers who pass it on to us.
38-year-old paramedic from Leicestershire
“I would like to secure a full-time job to support my family.”
I want to have a reliable, full-time source of income to cover my living expenses, meet my student loan payments, and eventually have enough left over to start saving. With a little more income, I can buy my 4-year-old son the bike he wants.
Graduating with my Master's degree in Creative Writing in August will be a major milestone, and my greatest hope is that it will inspire me to build a great career in the literary world that will support myself and my family. is.
The cost of living makes it incredibly difficult to just feed a family and pay rent. Juggling childcare, university, and work is stressful enough, so I spend a lot of my free time figuring out how to make ends meet.
Rachel, 28 years old, full time Master's student and part-time barista with precarious status living in Edinburgh
“Having to pay private healthcare costs impacts our retirement plans.”
My wife and I both worked overseas for many years in jobs without pension plans, so we don't receive much pension. Although your investments are more than enough for a decent retirement, you will have to pay for medical care. My wife has had two carpal tunnel surgeries this year, each with nearly one surgery. I will need another surgery soon, but the cost will be around 30,000 yen. Worst of all, she really needs a knee replacement, which will cost £15,000. have to pay for treatment [because of long NHS waiting lists] It leaves a big hole in your financial plan.
I would like to be able to work a little shorter hours, but it depends on whether I can tolerate a reduction in salary and whether my employer allows it. At our age, we need more time to take care of each other, but we may not have as much time left.
John, 65, computer scientist from the Isle of Wight
