Concerns over the cost of living and the prospect of tax rises continue to dominate the outlook of Family Building Society members, according to the lender’s latest half-yearly wellbeing survey.

The research, carried out in the run-up to the Budget, found that the cost of living crisis remains the biggest perceived threat to financial stability — a position it has held since the survey began in April 2023.

Expectations of higher taxes on income, business activity and inheritance were also cited as key risks, alongside worries about the knock-on effects for pensioners, welfare and savings products such as cash ISAs.

Sentiment ahead of the Budget is notably bleak. Some 59% of respondents said they were concerned about the forthcoming announcement, while only 1% described themselves as positive.

Despite this, three-quarters said speculation around tax policy has not yet altered their financial or retirement planning.

MEMBER SENTIMENT

Verbatim responses echoed wider unease about the direction of fiscal policy and the timing of the Budget. One respondent said: “Too many rumours. But expecting the worse. They have put off the budget to late November instead of the normal October as they have no idea what to do.”

Another commented: “They are flip flopping and putting everyone on edge. People are taking money out of pensions which may or may not be a good idea, who knows!”

Some highlighted the impact on the housing market, with one respondent saying: “People are not buying houses or moving as again, no one knows what is going to happen to stamp duty. Businesses are on hold as fear of more taxes. The outlook, for me, is very much worse than it has been for the last five years.”

Others warned of “higher taxes and a raid on pension pots” and complained of “higher taxes, restrictions to ISAs, lower savings rates, increased inheritance tax – nothing good.”

ECONOMIC OUTLOOK

A narrow majority, 56%, expect the economy to slow over the next six months, while one third foresee no change. Only 5% believe growth will return. Several respondents said they fear the Budget will either “crash” or “stagnate” the economy.

Members remain cautious over interest rates. Some 40% anticipate a 0.25% cut within six months, suggesting expectations of only gradual easing by the Bank of England.

HOUSING AND PENSIONS

The survey also recorded strong backing for housing supply reforms. Abolishing stamp duty for downsizers drew support from 62% of respondents, while 53% backed a greater focus on brownfield development and 47% favoured the conversion of unused office space into housing.

On pensions, half of members said the triple lock remains “essential” for protecting incomes. A further 23% acknowledged that the mechanism might need adjustment in the future, reflecting ongoing debate about its long-term affordability.

Alistair Nimmo, the Family Building Society’s director of marketing, said: “While taxation has emerged as one of the leading perceived threats to financial wellbeing, alongside cost-of-living concerns, worries about pensions, job security, and global instability have eased.”

He added that anxiety extended across generations. “However, over a third of our members say that their children and grandchildren feel pessimistic about their own financial wellbeing and only 3.72% feel optimistic about the next six months.”

SURVEY DETAILS

The Financial Wellbeing Autumn 2025 survey was sent to 27,269 members and received 4,276 responses, giving a 15.7% response rate. This compares with the Autumn 2024 survey, which went to 19,090 members and produced 2,715 responses, a 14.2% response rate.