THIRTEEN million adults in the UK expect their finances to worsen over the next three months, research by LV= suggests.

A report by the County Gates-based pensions and retirement specialist found faltering confidence amid the resurgence of Covid-19.

The LV= Wealth and Wellbeing Monitor, which surveys 4,000 adults, found a quarter – equivalent to 13million people nationally –expecting their finances to worsen in the next three months.

A third – equivalent to 17m – said their finances had been deteriorated over the previous three months.

Almost half said their monthly outgoings had increased and only nine per cent said they had decreased.

Twenty per cent said the amount they were saving had fallen.

Clive Bolton, managing director of protection, savings and retirement for LV=, said: “The Covid-19 pandemic has been incredibly difficult for the nation and had a huge impact on the lives, personal finances and mental health of millions of people.

“Consumer sentiment had been steadily improving between spring and early autumn 2021 as the success of the vaccine programme, fall in death rates and easing of lockdown restrictions allowed to life to begin to return to normal. However, the appearance of the Omicron variant and rising infection levels has knocked confidence back to levels last seen in the dark days of December 2020.

“Inflation is becoming more of a problem for many people who say their outgoings have increased, particularly those who are retired. Rising prices coupled with poor returns on deposit accounts will dismay pensioners whose only or main source of retirement income is the state pension. Many will be financially squeezed as the cost of essential items like home heating rise while returns from savings accounts – which typically form the bulk of retired people’s savings – remain low. However, the economy remains relatively strong and wages are rising for those people whose jobs are unaffected by lockdowns.

“Millions of people have endured a difficult Christmas and New Year but hopefully the current booster vaccine programme will be successful and confidence will return as the virus comes under control.”