According to its latest report titled ‘Coping Classes’, it said that the UK’s unemployed population are focused on reducing their debt to stave off the threat of a potential financial survival gap.
The report describes the coping classes as middle income earners who have been hit by the recession and are affected by the public sector spending cuts.
Friends Life found that almost half of the group identified saving for retirement or a rainy day as the main reason for saving, while the rest of the adult population put saving for a holiday or travel at the top of their list.
In addition, almost half of them agreed that it is the individual’s responsibility to make provision for their own retirement, rather than rely on the state.
David Hynam, executive director of operations for 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’re 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.
He added: “Most striking is the new attitude towards debt. We’re witnessing a slow march down the debt mountain, which will have huge implications for financial planning and for the financial services industry.”
