Tag: Legal & General

South-west England ‘the happiest region in the UK’

Words most associated with EDINBURGH are history, architecture & theatre/arts

New research has revealed that Edinburgh is labelled as historical by people across the UK. The survey by Legal & General asked respondents to select the words they most associate with various UK cities, including their own. 

The survey found that the top words associated with Edinburgh are historical (53%), architecture (42%), and theatre/arts (40%).

Other key findings include:

  • Respondents living in Edinburgh chose historical (71%), theatre/arts (65%), and architecture (62%) as the top words associated with their city
  • The words least associated with Edinburgh are industrial (10%), rugby (11%), and football (14%)
  • Edinburgh was the second most prosperous (23%) and innovative (16%) city, behind London only
  • Edinburgh is the UK city most associated with architecture, chosen by 42% of respondents

Legal & General also investigated the various satisfaction levels of people living in the UK in their Rebuilding Britain Index report.

The study finds that 69% of Brits are satisfied with their local area – this was 68% among those in Scotland. However, there are many factors such as healthcare (62%) and public green spaces (50%) that significantly affect levels of contentment. 

  • People in the south-west of England have the highest levels of satisfaction with their local area (76% of survey respondents).
  • In contrast, just 62% of those polled in the north-east say they are satisfied with their area – the lowest of any region.
  • “Expensive” is the word Brits most associate with London (68% of respondents).
  • “Historical” is how Brits are most likely to describe Edinburgh (53%), while Sheffield is viewed as “industrial” (43%), and the word most associated with Newcastle is “football” (44%).
  • Overall, 69% of the UK are satisfied with the place where they live.
  • Access to high quality health services (GP, dentists, pharmacy) is the factor that most determines satisfaction with an area – 62% selected this option.

Satisfaction runs deep 

There is no shortage of local pride in Britain’s regions, but the sunny south-west, including Bristol, Bath and the towns and villages of Somerset and Gloucestershire, has the highest levels of satisfaction (76%) among locals when asked to rate the place where they live.

New research from Legal & General as part of their Rebuilding Building Britain Index explores satisfaction levels across the UK.

As part of the research, 20,000 people were surveyed to find out how satisfied they are with their lives – and how different factors – from work opportunities to transport – affect their levels of contentment. 

The study found that Brits are largely happy with their neighbourhood – 69% say they’re satisfied with their local area.
Diagram Description automatically generated

The key to happiness 

But not everyone would describe their local patch as a happy place to live. In the north-east of England, just 62% of respondents said they’re satisfied with their area – the lowest of any region. And when asked which factors have the biggest impact on satisfaction levels, the survey revealed that healthcare, public green spaces and a reliable mobile signal are crucial to how people view their surroundings.

Other factors include congestion and quality of local roads, as well as the availability of well-paid employment options. 
Application Description automatically generated

The words on the street

Our health, happiness and sense of place is affected by the way we perceive the world around us. So how do Brits view different cities across the UK? A new survey commissioned by Legal and General asked respondents which words they would use to describe different urban centres. Here are the top answers:

LONDONExpensive (68%)
SHEFFIELDIndustrial (43%)
BIRMINGHAMIndustrial (36%)
GLASGOWHistorical (35%)
BRISTOLHistorical (28%)
NEWCASTLEFootball (44%)
CARDIFFRugby (35%)
LEEDSFootball (33%)
EDINBURGHHistorical (53%)
BRIGHTONLively (42%)

Newcastle had the most UK respondents label the city as ‘friendly’ with 35% selected this as an option to describe the area. Sheffield (25%), Birmingham (24%), Cardiff (26%) and Brighton (30%) were the only other UK cities where ‘friendly’ was selected as one of the top 3 associated words.

Respondents offered other words and phrases as part of the survey which they believe resonate with UK cities, such as the ‘Commonwealth Games’ for Birmingham, ‘University’ for Bristol and ‘LGBTQ’ for Brighton. 

The full breakdown of associated words can be found here: https://group.legalandgeneral.com/en/inclusive-capitalism/future-proofing-society/our-happy-places 

John Godfrey, Director of Levelling Up, Legal and General comments: “Our Rebuilding Britain Index focuses on how economic infrastructure and the built environment can support efforts to level the playing field of opportunity.

“The end-game is in people leading happier and more fulfilling lives – but we’ve found that life satisfaction can be significantly impacted by our surroundings. Our research into the common associations people in the UK have with our capitals gives us interesting insight into this specifically.”

Shrinking Safety Nets: Working families raid savings to meet the demands of rising living costs 

  • The average working household has £2,400 in savings –  the equivalent of less than a month’s worth of basic expenses
  • Over half of all savers say they will fall back on their rainy-day funds to meet rising living costs
  • Working families estimate they need £12,100 in the bank to feel financially secure but less than a third of households have this set aside
  • It would take the average household three years to put aside the desired financial safety net

One in four working households with savings (28%) have started dipping into them to meet rising living costs, according to a report from Legal & General. A further 30% anticipate they will need to do so in the next year.

With consumer prices 10.1% higher in July 2022 than a year before2, and with annual household energy costs set to rise to an average £2,500 in October 20223, many households will likely have to rely even more on the money they have tucked away. This could see household savings built up during the pandemic lost.

The average working household currently has £2,400 in savings. However, this equates to less than a month of basic expenditure for the average family, if they lost their income and were pushed to rely on their savings.

Financial security under threat

To feel financially secure, households estimate they need £12,100, or nearly five months worth of basic household expenses, set aside. However, only three in 10 working households (30%) have this set aside, and pressure to dip into savings will likely see this number fall.

Based on current savings patterns, with the average working household saving just over £300 a month, it would take three years to reach the desired financial safety net, and nine years to put aside a year’s worth of essential spending. However two-thirds (64%) of all households that currently save have either already decreased or stopped their savings habit altogether (31%), or expect to have to do so (34%), due to increased living costs.

No safety net for some

There is also a growing number of people who cannot put aside any money; nearly 1.9 million households have no money left at the end of the month, an increase of 330,000 since 2020.

This is likely why 16% of households have no savings at all in case of emergency.

“With the cost of basic essentials on the rise many households will find themselves having to make difficult choices and dipping into savings  is likely to become more common. This is a far cry from the five-month financial safety net that people hope for”, said Bernie Hickman, CEO, Legal & General Retail.

“It can be concerning for people to feel like they have nothing to fall back on in times of difficulty. While dipping into savings is inevitable for some,  there are also steps people can take to try to control their costs as much as possible by checking their regular outgoings and subscriptions, shopping around for discounts and deals and by making sure they are taking up free financial guidance services like MoneyHelper.

“To help people better understand their money and make informed decisions, we have put together a financial safety net content hub to help people find free tools and resources.”

Still smiling: Legal & General pays a record £797m in UK claims

Legal & General paid out a record 46 personal protection claims every day in the UK during 2021, totalling £797.9 million – an increase of £33.9 million from 2020 – and benefitting 16,890 customers and their families.

As the UK’s number one individual Life Insurance provider Legal & General has paid out more than £3.5 billion in claims over the past five years across its Life, Critical Illness Cover (CIC), Terminal Illness Cover (TIC) and Income Protection (IP).

Overall, the provider paid 97% of individual protection claims with an average pay out of £47,243.

Of the small percentage not paid, almost nine in 10 were because of ‘deliberate or reckless misrepresentation’. Over 30% of misrepresentations were due to lifestyle factors that should clearly have been in the customers knowledge, with the majority of these being linked to alcohol. 

Legal & General continues to work closely with its partners and distributors to help minimise misrepresentation and do more to explain how insurance claims work so it can support even more customers in 2022.

The wider impact of Covid-19

As in 2020, the pandemic impacted the 2021 claims data; with almost one in seven life claims Covid-19 related. Legal & General paid out 1,579 Covid-19 life claims at an average of £46,769 per claim, making up a combined total of almost £74 million – over £34.6 million more than last year.

The difference in claims for men versus women when it came to Covid-19 related deaths is stark. Only 35% of Life Insurance claims came from women, compared with 65% from men. Legal & General’s figures continue to reflect those from the Office for National Statistics that show men are more likely to pass away from Covid-19 than women2. In contrast, 60% of Legal & General’s overall Life Insurance claims are for men, again indicating an increase when looking at Covid-19 claims specifically.

Income protection continues to play an important role

Legal & General paid 417 IP claims in 2021, at a monthly average of £1,067 per claim, totalling over £3 million. The main cause of IP claims was musculoskeletal disorders (37%), followed by cancer (12.5%) and coronavirus (9.8%).

All IP products include Legal & General’s Rehabilitation Support Service. It gives customers access to an in-house team of healthcare professionals who offer wide-ranging physical and mental health support at no extra cost.

Project Smile

This year saw the launch of Project Smile, an initiative to support children going through a difficult diagnosis.

For every claim relating to a child’s illness paid, the provider sends a gift to the child to help bring a smile to their face. Gifts are chosen according to the preferences of the child and can include anything from a voucher to a Peppa Pig toy.

David Banks, Director of Claims and Underwriting said: “Paying claims is core to what we do. As we continue to come back from Covid-19, we remain focused on giving our customers and their loved ones financial support when they need it most. But more has to be done to tackle misrepresentation.

“At Legal & General we’re working closely with partners and distributors to help make the underwriting process as transparent and streamlined as possible. We hope that increasing knowledge around the lifestyle and general health information required will minimise misrepresentation and help us support even more customers in their moment of need.

“We’re proud to have paid out more than £797million in claims last year, but it’s the personal impact behind the figures that’s most important. We know an injury or illness affects the whole family, none more so than when it happens to a child. That’s why we have launched Project Smile.

“Our assessors get to know the families throughout the course of a claim – we wanted to go beyond just dealing with the paperwork and show that we are thinking of them through what is likely to be the most challenging time of their lives.”

Millions of people think inflation will leave them better off

More than half of all cash savers (52%) don’t know what impact inflation will have on the real value of their cash savings over time, while 13% believe inflation will leave them better off

New research from Legal & General1 has found that despite inflation reaching record levels many people in the UK are not aware of its impact on their finances. The findings reveal:

  • More than half of all cash savers (52%) don’t know what impact inflation will have on the real value of their cash savings over time:
    • One in 10 (13%) incorrectly believe inflation will leave them better off
    • 13% think the real value of their savings would stay the same
    • More than a quarter (26%) say they don’t know what impact inflation could have on their cash
  • Millions of savers (64%, the equivalent of 10.3 million) have taken no action on their savings, despite cash earning next to nothing in interest and inflation rising steeply. In fact, half of all savers (54%) currently keep their money in cash over the long-term.
  • The total cost of “saver inaction” in such an environment (6% inflation) could amount to £18 billion if this trend continues over the next five years2.
  • Savers currently have £136 billion sitting in cash ISA accounts on average interest rates of 0.26% per year3.
  • Legal & General analysis shows the impact of inflation for every £1,000 stashed away:
Inflation rateAverage £ lost overfive yearsTime for savingsto halveNational cost of saver inaction overfive years
6%£24313 years£18 bn
7%£27811 years£21 bn
8%£311Under 10 years£23 bn

Source: Legal & General, 2022

Emma Byron, Managing Director, Legal & General Retirement Solutions, said: “Inflation is at its highest rate for three decades and it’s worrying that savers don’t realise its eating away at millions of pounds sitting in low-interest paying accounts.

“Understanding the impact of inflation is crucial to understand how much money you have in real terms. Whilst it is essential to keep some cash in the bank for an emergency fund, savers might want to consider other options to make their money work harder.”

Three ways of protecting your savings from inflation


Tip 1: Work out how much to put aside as an easy-access emergency fund

The Money Helper4 service suggests that you should save for emergencies. As a rule of thumb, you’ll need enough to cover your essential expenses for three months.

You should be ready cover bills like energy, your mortgage, travel and food costs, so should the unexpected happen, you’ll be prepared.

And you’ll know exactly how much money you need to keep in cash (which can be hit by inflation), so you can start saving any extra income in more inflation-proof ways.

Tip 2: Get best the interest rate you can on your savings

Make sure that any cash savings you have are getting the highest interest rate possible.

These days you can switch savings accounts and ISAs relatively easily. But if you do find a higher rate, remember that they can quickly go down.

For example, it’s common for Cash ISAs to offer high rates for the first year. Those rates can drop dramatically after the first year. So always set a reminder to keep an eye on any new savings rates you find. You can find more information on most bank websites and compare interest rates on comparison websites.

Tip 3: Think about investing your money or topping up your pension to beat inflation

It’s important that consumers are aware of the long-term impact of their pension contributions, alongside the compound effects of investing.

So if you can stash your savings away for the long term, think about topping up your pension, or investing in a stocks and shares ISA.

People will understandably be feeling unsure about the future at this moment in time, but the key thing to remember is that investing is for the long term.

With time on your side, you can balance out the ups and downs of market volatility. And if you have an emergency fund, you might well be able to ride out any storms and leave your investments untouched. That’ll give them a chance to go back up in value again.

A third of young people could only last 4.5 months without family financial support

A third of all young people – those aged 18 to 34 – receive regular monetary ‘support gifts’ from their parents and grandparents, according to research from Legal & General Home Finance1.

According to the findings, of those who need financial support to make ends meet each month they could only maintain their current outgoings (e.g. bills, rent)  for up to 4.5 months if this support were to stop.

Many young people appear to utilise gifts from older family members to supplement their income. On average, since turning 18, young adults have received £19,347 in regular support gifts from their parents and grandparents2.

In 2020, the need for family support has increased further.

On average, parents who provide monthly support will give £1,356 a year, in the form of a monthly gift (or £113). This has increased by 26% in 2020, as parents  have added an additional £353 in support to help their children face the financial pressures of the pandemic.

The research comes at a time when young people are more dependent on family as a financial safety net than ever before, as Office for National Statistics results reveal that the unemployment rate among young people is far higher than the overall rate (14.6% vs 4.8%)3.

This pinch may be further impacted by a fall in seasonal jobs due to fewer available non-essential retail roles in the run-up to Christmas, typically filled by younger workers.

For parents that provide financial aid, the majority will come from their own savings (49%) or income (43%). 14% of parents will use property wealth such as the sale of property, to provide gifts. Legal & General has found that of its equity release customers, approximately 1 in 6 will use part of their payments to support gifting.

While most parents like to ensure gifting is split equally across any younger relatives (68%), in one in five cases (21%) the amount given varies across family members. This is usually driven by the individual’s needs (61%) but 27% parents admit they feel closer to the relatives they provide additional support to.

Claire Singleton, CEO of Legal & General Home Finance, said: “It is clear that without the generous gifting of parents and grandparents, many young people would be unable to independently sustain their lifestyle. The monthly cost may not initially seem high but as we can see from our data, the cost of gifting to younger family members can add up over time.

“In addition to monthly support, many parents and grandparents will be called on to provide additional one-off payments to help with large expenses like weddings or putting a deposit on a house.

“Utilising property wealth, by either downsizing or using equity release, can often be helpful here as it allows the opportunity to give a living inheritance without touching your income. However, these decisions aren’t easy and should be closely considered. Be sure to do your research, free information from the Money Advice Service is a great place to start, or, if gifting is likely to have an impact on your retirement income, turning to an adviser may be the right path.”

Many people who provide support are happy to do so, respondents to the research shared the following:

“I supported my younger brother when he started sixth form this year. It really makes me feel good, satisfied and enriched that I’m making a difference in someone else’s life.”

“We provided financial support to my partner’s children during the pandemic… they weren’t working, they didn’t have any savings to pay for their rent. We actually paid for all of them during the time of the lockdown. We’re quite happy to have supported them through it, I wouldn’t see them struggle.”

Those who receive financial aid often feel it brings them closer to their relatives, respondents to the research shared the following:

“It’s been hugely helpful for me as that gave me the push to buy at that time, it’s given me the chance to own my own home … It’s something I hope to be able to do for my own children in the future.”

“I recently received a sum from my aunt, she said she would rather be alive and see me make use of the money…since receiving it I definetely feel a lot closer to her. I just feel eternally grateful that she’s done that for me.”

NOTES

1.Opinium Research ran a series of online interviews among a nationally representative panel of 4,001 UK adults between the 25th September and 3rd October 2020

2.This is averaged across all people 18-34 who have received financial aid from their parents or grandparents.

3.https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/november2020

Thousands of Scottish volunteers supporting those in need

  • Nearly one-fifth of people in Scotland (16%) say they are volunteering in their communities during the COVID-19 crisis
  • 70% of these volunteers are helping out by doing grocery shopping for others
  • Over half (56%) of people in the region said they plan to buy more goods locally post-lockdown to help their local economy
  • A further 55% also said they plan to make more use of local stores after the lockdown

 

The majority of community volunteers in Scotland are helping other members of their community with essential shopping during the COVID-19 crisis, research from Legal & General and Cebr has revealed.

Seven in 10 (70%) of community volunteers in the region said they were doing grocery shopping for others during the coronavirus outbreak, according the FTSE100 financial services group’s Isolation Economy Report. Nearly one-fifth of people in the country (16%) have been involved in volunteering efforts during the crisis.

Legal & General’s research has also found that people in Scotland also plan to deliver a boost to their local economies, with 56% saying they will buy more goods in local stores and another 55% planning to make more use of local stores after the lockdown.

These new regional figures come as the Isolation Economy research showed that 10 million UK adults are serving as an informal ‘volunteering army’, supporting local communities and helping vulnerable people.

Each week, the work these volunteers are doing has an equivalent economic value of more than £357 million, according to the Isolation Economy research, with each individual contributing on average three hours of their time. 

Nigel Wilson, CEO at Legal & General said: “Being more isolated has made us also more inclusive. Britain’s community spirit has doubled down in lockdown, forging an informal army of volunteers who are now a key part of our national infrastructure in the crisis.”

“Individuals and families have come together and created new ties across communities, cutting across age, income and circumstances.

“We have become a nation of volunteers during the COVID crisis. And – judging by the millions who plan to continue after the lockdown – it is a change that is here to stay.” 

Volunteering in the crisis

According to the Isolation Economy study, one in every five UK adults (19%) has volunteered their time for community-level activities or organisations since the start of the lockdown on March 23rd. This includes nearly a quarter (23%) of furloughed workers.

Royal Voluntary Service has been leading the volunteering efforts in response to the Coronavirus crisis. The charity has been working together with its corporate partner Legal & General, with employees of the FTSE100 company taking part in volunteering efforts including making phone calls to check in on vulnerable individuals.

Sam Ward, Director of Services and Deputy CEO for Royal Voluntary Service, said: “As restrictions ease for some, many older and vulnerable people will remain isolating at home, in desperate need of practical support, mental stimulation and companionship. 

“Royal Voluntary Service has mobilised to respond to Coronavirus through a massive, co-ordinated volunteer effort. The public response has been a beacon of hope during this crisis with legions of people stepping forward to volunteer and help others. Our volunteer army is needed more than ever before to meet the need older people continue to face now, and over the coming months as they try to re-build their lives.”

67% of volunteers are helping with grocery shopping for others and a quarter (26%) have collected and delivered medicines or prescriptions. 16% of those donating their time have volunteered to make calls to people in a bid to combat loneliness. All of this activity is separate to the actions of those people serving in the formal NHS volunteer programme.

Across the generational divide, people are coming together to give up their time and help those in need, according to the Isolation Economy research.

More than a fifth (22%) of those aged between 35 and 54 were volunteering for instance, as are 18% of over-55s. Millennials, while the least likely to volunteer (17%), gave up the most time – an average of 3.5 hours a week on grocery shopping and 4.4 hours if volunteering in other ways.

Almost a third (29%) of UK adults believe that the younger generations have taken on more responsibility during the lockdown to support their parents and grandparents.

This spirit of supporting others is more than a short-term trend. More than three-quarters (78%) of those volunteering plan to continue helping those in need after the lockdown.

Bringing communities together

Community ties have also strengthened under the lockdown. The Isolation Economy research also reveals that two-thirds (64%) of UK adults feel their communities have ‘come together to help each other’ during the crisis.

This renewed community spirit includes extending financial support to local businesses. Families have tried to help those that help them, continuing to pay cleaners, gardeners and other workers for services they knew they would never be able to use under lockdown.

£637 million was spent on unused goods and services between the start of the lockdown on 23rd March and the end of April – a figure that has now risen to more than £1 billion two months into lockdown.

UK adults have spent £170 million on prepaid vouchers and coupons and 60% plan to buy more goods from local stores in a bid to help local economies following the lockdown.

Legal & General is also extending its support for volunteering and charitable work amidst the crisis. The FTSE100 group has substantially raised its cap on matching funding for any activities where its employees are raising funds or donating their time for COVID-19 causes.

The change marks a ten-fold increase in donations from L&G.

Nigel Wilson continued: “Coronavirus has changed our behaviour and our priorities. More of us are giving up our time and savings to support local communities and businesses.

“People are paying for services they knew they would never be able to use due to the lockdown – but which made a difference to people’s lives and finances. These generous, vital gestures make a positive difference to the lives of others in the isolation economy.” 

Legal & General’s Isolation Economy research previously revealed a significant shift in consumer spending habits, giving ‘at-home’ spending a boost equivalent to an £12.9bn annually.

This change is largely a result of UK adults’ increased expenditure on four key “at home” categories during the lockdown: groceries, alcohol, entertainment and hobbies & crafts.