All posts by : Hannah

With the June heatwave out the way and more expected, the changes in the spaces around us seem obvious when the weather peaks. Parks become busier, beaches fill up, barbecues appear and conversations quickly turn to the weather.

But behind the scenes, consumer spending habits also begin to change.

A spell of unusually warm weather can have a surprisingly significant effect on how, where and when people spend their money. For some businesses, a heatwave can provide a welcome boost. For others, it can create challenges as consumer priorities temporarily shift.

Sunshine Changes Spending Habits

Perhaps unsurprisingly, warmer weather tends to increase spending on activities that help people make the most of the sunshine.

The British Retail Consortium (BRC) has regularly reported that periods of warm weather boost sales of seasonal products, particularly food, drink and outdoor leisure items. Supermarkets often see higher sales of barbecue food, soft drinks, salads, fresh fruit and ice cream, while pubs, cafés and restaurants with outdoor seating can benefit from increased footfall.

Domestic tourism can also receive a boost. As temperatures rise, many people choose day trips, seaside visits and short breaks closer to home, creating opportunities for attractions, hospitality businesses and tourism operators across the country.

For many consumers, good weather creates a sense of spontaneity. A meal out becomes a barbecue. A quiet weekend becomes a day at the coast. Small spending decisions quickly add up across the economy.

Retail Spending Shifts

Heatwaves don’t simply increase spending, they change it.

According to the Office for National Statistics (ONS) retail sales data⁠, weather conditions can have a measurable impact on retail sales performance, particularly within clothing, food and seasonal goods categories.

Retailers often see increased demand for summer clothing, sandals, garden furniture and outdoor leisure equipment. But some of the biggest winners can be surprisingly niche.

During previous UK heatwaves, retailers have reported significant spikes in demand for electric fans, portable air conditioning units and blackout curtains as households look for ways to keep their homes cool. Paddling pools regularly sell out, while garden parasols and outdoor furniture can become difficult to source during prolonged spells of hot weather.

Pet products have also emerged as unexpected beneficiaries in recent years. Cooling mats for dogs, portable pet water bottles and shaded outdoor shelters often experience increased demand as owners look to keep their animals comfortable.

There are even examples of products benefiting from what might be described as “heatwave optimism”. Inflatable hot tubs, outdoor speakers, garden games and premium barbecue equipment have all enjoyed strong sales during periods of sustained sunshine, as consumers seek to make the most of good weather while it lasts.

When It Gets Too Hot

Interestingly, there can be a tipping point.

When temperatures move beyond pleasantly warm and into the high 20s or 30s, some consumers begin looking for ways to escape the heat rather than embrace it.

In a country where air conditioning remains relatively uncommon in homes, indoor venues can suddenly become much more appealing. Estimates suggest that fewer than 5% of UK homes have fixed air conditioning, meaning shopping centres, cinemas, museums and other climate-controlled venues can offer welcome relief during periods of extreme heat.

Research published by the Met Office⁠ has highlighted how weather conditions influence leisure activities, travel patterns and consumer behaviour. As temperatures climb, people often adapt by changing where they spend their time as well as where they spend their money.

The result is that some businesses benefit twice, first from consumers enjoying the sunshine and then from consumers looking for relief from it.

The Psychology Behind It

One of the most interesting aspects of heatwave spending is that it is often driven by emotion as much as necessity.

Behavioural economists such as Richard Thaler and Daniel Kahneman have shown that our financial decisions are often influenced by context as much as logic. Factors such as weather, mood and social activity can all shape spending behaviour, helping to explain why periods of good weather often lead to increases in leisure and discretionary spending.

When the sun appears in Britain, there can be a collective sense that the opportunity should be enjoyed while it lasts. People are more likely to socialise, travel, eat out and spend money on experiences.

In many ways, a heatwave encourages people to live more in the present.

That can be positive, but it also serves as a reminder that our financial decisions are often shaped by our environment as much as our financial plans.

Not Every Business Benefits

Of course, not all sectors benefit equally.

Consumer spending is rarely unlimited. When people spend more in one area, they often spend less elsewhere.

While warmer weather can boost spending in hospitality, tourism and seasonal retail categories, the Office for National Statistics retail sales data⁠ demonstrates that changes in consumer behaviour often redistribute spending rather than increase it evenly across the economy.

Some retailers may experience quieter periods as consumers prioritise outdoor activities, holidays or leisure experiences. Certain product categories can see demand fall while seasonal products surge.

Heatwaves therefore create winners and losers across the economy, even if overall spending rises in the short term.

What It Means for Financial Planning

A heatwave is unlikely to transform anybody’s long-term financial position, but it does provide an interesting reminder of how external events influence our spending behaviour.

Whether it’s a spell of hot weather, a major sporting event, a market downturn or economic uncertainty, our financial decisions are often shaped by factors that have little to do with spreadsheets and budgets.

The key is not to avoid enjoying those experiences.

Rather, it’s about recognising how our environment influences our decisions and ensuring short-term spending remains aligned with longer-term goals.

Final Thoughts

The British weather may be unpredictable, but one thing remains remarkably consistent: when the sun comes out, spending habits change.

From increased spending on food, drink and leisure through to unexpected surges in demand for fans, paddling pools and even pet cooling products, heatwaves have a surprisingly wide-ranging impact on consumer behaviour.

Perhaps most interestingly, they remind us that spending is rarely driven by numbers alone. Our mood, our environment and our perception of opportunity all play a role in shaping the financial decisions we make.

And when the next heatwave arrives, chances are many of us will be reaching for our wallets just as quickly as we reach for the sun cream.

Retirement planning has always involved uncertainty.

But over recent years, many people approaching retirement will have noticed something different, global events now seem to affect personal finances far more quickly and far more directly than they once did.

Inflation spikes, rising interest rates, market volatility, energy price shocks and geopolitical uncertainty have all become regular features of the financial landscape. For retirees and those nearing retirement, that can understandably create concern around one important question:

How do you make your money last?

Recent research from Morningstar explored exactly this issue, revisiting the widely discussed “4% withdrawal rule” and how retirees can sustainably draw income from investments during retirement.

The findings offer some useful reminders, particularly during periods of uncertainty.

The Challenge Facing Modern Retirees

One of the key themes in the research is that retirement planning today is not simply about investment growth.

It is also about managing uncertainty over potentially decades of retirement.

No one can predict with certainty:

• how markets will perform;
• how long inflation may remain elevated;
• what interest rates will do; or
• how long retirement itself may last.

According to Morningstar’s latest UK research, a withdrawal rate of around 4% still appears broadly sustainable for many retirees over a 30-year period, although this depends heavily on factors such as investment mix, inflation and flexibility in spending.

What is particularly interesting is that the research places increasing importance not just on returns, but on resilience and adaptability.

Why Inflation Matters More Than Ever

Inflation can quietly become one of the biggest risks to retirement income.

Even relatively moderate inflation can significantly reduce purchasing power over time. Recent years have demonstrated how quickly rising prices can affect everyday living costs, from energy bills and food prices through to travel and insurance costs.

Morningstar’s research highlights that inflation assumptions play a major role in determining sustainable retirement income levels.

For retirees relying on fixed withdrawals, periods of prolonged inflation can place additional pressure on portfolios, particularly if markets are also volatile at the same time.

This is one reason why retirement planning increasingly needs to be viewed as an ongoing process rather than a one-time calculation.

Flexibility Can Matter More Than Precision

One of the more reassuring takeaways from the research is that retirement planning does not need to rely on rigid rules alone.

In fact, flexibility may be one of the most valuable tools retirees have.

Morningstar’s analysis suggests that retirees who are willing to adjust spending during more difficult market periods can often withdraw more sustainably over the long term.

That does not necessarily mean dramatic lifestyle changes. More often, it simply means recognising that retirement income planning works best when it can adapt to changing conditions.

The reality is that retirement rarely follows a perfectly straight line. Markets fluctuate, priorities evolve and unexpected events inevitably occur along the way.

Balancing Stability and Growth

Another important theme is the balance between investment growth and stability.

The research notes that portfolios with lower levels of volatility can sometimes support more sustainable retirement income because large market falls early in retirement can have a lasting impact on long-term outcomes.

This is often referred to as “sequence of returns risk”, the danger of experiencing significant market declines in the early years of retirement while simultaneously drawing income from investments.

For many retirees, this reinforces the importance of diversification and maintaining a portfolio designed around both long-term growth and shorter-term resilience.

Financial Planning Beyond the Headlines

Periods of economic uncertainty can naturally lead people to focus on short-term headlines.

But retirement planning is ultimately about much longer time horizons.

The most effective plans are rarely based on trying to predict every market movement or global event correctly. Instead, they are usually built around creating enough flexibility, resilience and clarity to navigate uncertainty with confidence.

At Digby Associates, we believe good financial planning should provide reassurance as well as strategy, helping people make thoughtful, informed decisions even when the wider world feels unpredictable.

If you would like to review your retirement plans or discuss how current economic conditions may affect your long-term financial planning, our team would be very happy to help.

Most people have heard of doomscrolling.

The habit of endlessly consuming negative news, worrying headlines and social media updates can leave us feeling anxious, overwhelmed and uncertain about the future.

Increasingly, another term is entering the conversation: doomspending.

The phrase has grown in popularity over recent years as commentators and researchers have observed a trend of consumers spending money in response to economic uncertainty, rising living costs and concerns about the future.

But while the term may be new, the behaviour itself is not.

A Very Human Response

People have always spent money for reasons that go beyond practical need.

Whether it is comfort eating after a difficult day, booking a holiday during a stressful period, or buying something simply because it makes us feel better, spending has long been tied to emotion as much as logic.

What’s changed is the world around us.

We now carry online shops in our pockets, receive personalised advertising throughout the day and consume a constant stream of news and social media updates. Against that backdrop, it is perhaps unsurprising that spending can sometimes become a response to stress, uncertainty or anxiety.

In simple terms, doomspending describes the tendency to spend money in an attempt to regain a sense of control, comfort or enjoyment when the wider world feels uncertain.

Why Is It Happening Now?

Recent years have brought no shortage of reasons for people to feel unsettled.

The pandemic, inflation, rising energy bills, higher mortgage rates, geopolitical tensions and an increasingly relentless news cycle have all contributed to a backdrop of uncertainty for many households.

Research suggests economic uncertainty may be influencing spending habits. In the United States, where consumers have faced many of the same inflationary and economic pressures seen in the UK, a survey reported by Psychology Todayfound that 43% of millennials admitted to making purchases in response to concerns about the future, a behaviour that has become known as “doomspending”.

While the reasons vary, the underlying theme is often similar:

“If the future feels unpredictable, I may as well enjoy myself today.”

It’s a mindset many people can relate to, even if they don’t recognise it as doomspending.

The Psychology Behind It

One of the reasons doomspending can be so powerful is that it provides an immediate reward.

Making a purchase can trigger a release of dopamine, the brain chemical associated with pleasure and reward. For a brief moment, buying something can create a sense of satisfaction, control or relief.

The challenge is that those feelings are often temporary.

As Morgan Housel writes in The Psychology of Money:

“Doing well with money has little to do with how smart you are and a lot to do with how you behave.”

It’s a useful reminder that financial decisions are often emotional before they are rational. Understanding our own behaviour can be just as important as understanding investment markets or interest rates.

Treating Yourself Isn’t the Problem

Of course, not all discretionary spending is bad.

Enjoying experiences, treating yourself occasionally and spending money on things that genuinely improve your quality of life can be an important part of a healthy relationship with money.

The more important question is why we are spending.

Are we making conscious decisions that align with our priorities and values? Or are we spending primarily to escape feelings of stress, boredom or uncertainty?

Simply pausing to ask that question can often lead to better financial decisions.

Building Financial Confidence

One of the most effective ways to reduce financial anxiety is to create greater clarity around your finances.

Having a realistic budget, maintaining emergency savings, understanding your long-term goals and having a financial plan in place can help create a sense of control when uncertainty inevitably arises.

Financial planning cannot remove uncertainty from life. Nothing can.

What it can do is help ensure that important decisions are guided by your goals rather than your fears.

Final Thoughts

Doomspending may be a growing financial buzzword, but the behaviour behind it is as old as money itself.

Humans have always looked for ways to feel safer, happier or more in control during uncertain times. Today’s difference is simply that spending has become easier, faster and more accessible than ever before.

Understanding the psychology behind our financial decisions does not mean never treating ourselves or enjoying our money. Rather, it means recognising the difference between spending that genuinely adds value to our lives and spending that is simply an attempt to ease temporary feelings of uncertainty.

The future will always contain unknowns. The goal is not to eliminate uncertainty, but to ensure our financial decisions are driven by our priorities rather than our anxieties.

For many grandparents, one of the greatest pleasures of later life is being able to help the next generation.

Whether it’s contributing towards a house deposit, helping with school fees, supporting grandchildren through university or simply lending a hand with everyday costs, financial support can make a meaningful difference at a time when many younger families are facing significant pressures.

In many ways, the traditional flow of wealth through generations is changing.

Rather than waiting until an inheritance is received many years in the future, more families are choosing to provide support when it can make the biggest impact today.

A Growing Role for Grandparents

The financial challenges facing younger generations are well documented.

House prices remain high, childcare costs continue to rise and many families are balancing mortgages, household bills and the increasing costs of raising children.

Against that backdrop, grandparents are often stepping in to help.

For some, that support may involve helping a grandchild onto the property ladder. For others, it could mean contributing towards school fees, paying into a Junior ISA or helping fund opportunities and experiences that may otherwise be out of reach.

For many families, this support has become an important part of financial planning across generations.

Seeing the Difference

There is another reason many people choose to give during their lifetime.

They get to see the impact.

Helping a grandchild buy their first home, supporting a child through a difficult period or contributing towards education can often feel far more tangible than leaving money behind many years in the future.

For many people, there is enormous satisfaction in knowing that their support is making a difference now.

Balancing Generosity With Financial Security

Of course, generosity should never come at the expense of your own financial wellbeing.

One of the most common mistakes people make is focusing entirely on helping family without fully considering how those gifts might affect their own long-term financial security.

Questions worth considering include:

• Can you comfortably afford the support you’re providing?
• Will the gift affect your retirement income?
• Have you retained sufficient emergency savings?
• Could future care costs affect your plans?
• Are gifts being made in the most tax-efficient way?

These are not reasons not to help. Rather, they are reasons to plan carefully.

Making the Most of Available Allowances

Many people are surprised to discover that there are several ways of passing on wealth efficiently during their lifetime.

Annual gifting allowances, gifts from surplus income and other inheritance tax exemptions can all play a role in helping family members while potentially reducing the value of an estate for inheritance tax purposes.

The key is ensuring that gifts are structured appropriately and that good records are maintained.

A Family Conversation

Financial support is rarely just about money.

Often it is about values, opportunities and helping the next generation build confidence and security.

The most successful family wealth transfers tend to be those that are discussed openly and planned thoughtfully, ensuring expectations are clear and decisions are made with the interests of all generations in mind.

Final Thoughts

Helping children and grandchildren can be one of the most rewarding uses of wealth.

The challenge is finding the right balance, providing meaningful support to the people you care about while maintaining confidence in your own financial future.

With careful planning, it is often possible to achieve both, and for families to make informed decisions about gifting, inheritance planning and long-term financial security, ensuring generosity today does not compromise peace of mind tomorrow.