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People need 466 more per month to feel comfortable

By Helen Gradwell

25 October2021

In spring of this year, the Aviva Times of Our Lives Report was launched. It looks at the worries, experiences and ambitions of different age groups in the UK - including their financial goals and concerns.

In spring 2021, British people said that they'd need 411 more per month (on average) to feel financially secure. By August, the figure had grown by 13% to 466 extra per month. This suggests that people are feeling more financially 'squeezed' as they try to manage their debts and build up their assets in a difficult economic climate.

The biggest 'income gap' is in the 35-44 age group - what Aviva refers to as the 'squeezed middle ages'. This age group needs 612 more per month to feel financially comfortable.

The biggest concerns for all age groups are personal and family health (35%) and the cost of household bills (26%). These worries are followed by savings, career progress and pension provisions. This suggests that people are generally more worried about the 'here and now' - the immediate cost of living - than planning for a financially stable future.

An expert from All About Money said: "People are obviously worried about their finances, and many are struggling to get by with what they have. Households all over the country are unable to think about the future because they're too busy trying to deal with the present.

"Putting money away in savings and pensions is really important to ensure that you have a financially stable future. It's no use, however, trying to save for the long term when you are struggling with current issues - such as debt problems. It's only sensible to try and deal with immediate problems first.

"One way to do that is to free up as much money in your budget as you can, and try to put the majority of it towards repaying your debts. Once you've reached a level of debt that you're more comfortable with - or you completely repay what you owe - you can start thinking more about savings.

"Sometimes, however, you simply don't have enough to get by each month. If this is the case, and you feel like your debts and other costs are spiralling out of control, it's really important to get some expert advice as soon as possible. There are solutions available that can make your monthly debt repayments more manageable. Once your current finances are in order, you'll be in a much better position to plan for a more stable future."

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