View more on these topics

72 per cent of households to cut spending this year

Axa says that 72 per cent of households with a total income of £30,000 or higher will be cutting their spending and many will be forced to get a second job due to the credit crisis.

Axa has launched a Financial Task Force to tackle the problems faced by middle Britain during the financial turmoil.

The Task Force is a group of economists, psychologists and industry experts whose role is to define the specific financial problems of middle Britain.

A poll of nearly 6,000 people found that 15 per cent of more affluent households have been forced to get a second job or to send a non-working member of the household out to work.

Around one in five high earners will either stop saving or will reduce their pension contributions as concerns over the credit crunch hit home.

Around 8 per cent of households earning over £30,000 are considering not renewing protection insurance to cut costs, meaning as many as 1.1m households could go without life insurance or critical illness cover this year.

The Axa figures also showed that 44 per cent said they will be eating out less to cut costs, while around one in five said they would socialise less with friends.

The Task Force aims to propose ways to overcome the financial problems facing middle Britain over the next 12 months.

Axa spokesman Steve Folkard says: “It’s no wonder that households with above-average incomes are struggling to cope. A typical family in Middle Britain may have a higher than average income but millions are weighed down by high lifestyle costs and face tough choices as the strain on their finances takes its toll.

“One of the biggest issues however is that many seemingly well off households lack the motivation to tackle their problems. We’ve had it easy for so long and been happily spending without thinking of the consequences that now people aren’t sure what to do. The aim of the AXA Financial Task Force is to investigate the economic issues facing Middle Britain and to propose recommendations for overcoming the psychological barriers to changing behaviour.”

Recommended

Fidelity plans distress debt fund

Fidelity has confirmed its intention to launch a new global credit vehicle believed to be called the distressed global debt fund.

Plunge points

The liquidity crunch is worsening for intermediaries as lenders continue to withdraw products and tighten criteria.

CGT reforms could trigger BTL sell-off

Capital gains tax reforms could mean a swathe of former buy-to-let properties will hit the market from Monday as investors seek to offload unwanted property, warn tax experts.

Transatlantic plan to monitor banking

Gordon Brown and George Bush are to set up a UK-US working group which will develop proposals to monitor and regulate the banking system.

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com