Just 41% of mid-lifers, or those aged 30-49-year-olds, are satisfied with their standard of living, with the rest feeling financially strained, according to research by Royal London.
Its Financial resilience report, which surveyed 4,003 adults, also found that almost half (47%) of families with children aged under 18 years are close to financial crisis or are feeling the pinch. Many respondents are already cutting back by reducing heating (36%), curbing social and leisure activities (33%), or cutting back on meals (11%).
The report also revealed that a fifth of respondents have less than £100 in cash savings, which has remained unchanged for two years. A tenth (9%) said they are on the brink of a financial crisis and 2% are already in one. Mid-life adults are the worst affected age group, with 16% either in or close to a financial crisis.
Just 5% have reduced or stopped pension contributions in the past year. However, 43% felt that their pension or retirement plans have been affected by the higher cost of living, 69% do not know how much is in their defined contribution pension pot, and 52% have not thought in the last year about how much money they may need for retirement.
More than half (59%) said they had money left over at the end of the month compared to 49% last year, and there was a small rise in the average amount of people’s cash savings, at £15,864 per person compared to £15,549 in 2024.
Sarah Pennells, consumer finance specialist at Royal London, said: “We have seen some signs of an improvement in people’s finances in the last year, but those still struggling with higher bills and food prices face difficult decisions as they try to rebalance their household finances. After more than three years of rising costs and higher bills, we’re seeing the impact on people’s longer-term finances, as well as their day-to-day spending.”