Nearly 60% of middle income households, classified as the Coping Classes by a Friends Life report, believe it is more important than ever before to invest in a pension.†
The Coping Classes report found that middle income earners (£25,000 to £50,000) are now focused on reducing debt to stave off the threat of a potential financial survival gap. The report is part of Friends Life's Vision of Britain 2020 series.
Almost half of the coping classes group identified saving for retirement or for a rainy day as the main reason for saving compared to the rest of the adult population who put saving for a holiday or travel top of the list.
Half (50%) of the respondents agreed that it is the individual's responsibility to make provision for their own retirement, rather than rely on the state. However, they are also calling on the government and financial institutions to help ease their way.
When asked which of a raft of measures would benefit them most financially, including help with care for elderly relatives and access to affordable childcare, the most highly-rated answer was less complexity in the tax and benefits system, followed by financial products tailored to needs.
David Hynam, executive director of operations at Friends Life, said: “Five years ago the Coping Classes were comfortably off, but the recession and the effects of public spending cuts seemingly tilted against them has changed their status.
“We are now seeing them take clear, decisive and urgent steps to address this, in the knowledge that state support and assistance in many areas is unlikely to return. Coping mechanisms being employed to survive the downturn identified in the report, include a renewed commitment to retirement funding."
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