Three in four households worse off

Yuan Phoon

November 23, 2011

The financial planning website attributed the fall to austerity measures and hikes in the cost of living with 44% of people claiming their household was up to £250 a month worse off and a further 18% estimating they were between £250 and £499 worse off a month.

Nine in 10 predicted they would have to face up to a major financial burden over the next five years and more than two thirds said they had been forced to revisit their financial priorities in recent months.

Some 43% have cut down on their spending in order to free up cash and 38% of people said they didn’t even have a long-term financial plan in place.

Andrew Harris, director at rplan, said: “It can be difficult to think about financial plans for the future when life is throwing up so many challenges on a daily basis.

“A lot of people are reacting to change having to cut their budgets on a monthly income that is decreasing in real terms. In this market everyone needs to have a financial plan so long term needs and goals can be balanced with short-term priorities.”

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