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Middle Britain is facing financial turmoil as households with above average incomes struggle to cope with the increasing strain on their finances, according to a new study by AXA.

The AXA study found that 72 per cent of households with a total income of £30,000 or higher will be taking steps this year to cut spending.

Many will be driven to radical measures as middle-class inflation, or those goods and services typically consumed by middle-income families hits 5.7 per cent.

Lack of money 

The AXA figures, taken from a poll of almost 6,000 people, show that some 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 reduce pension contributions as concerns over the credit crunch hit home in the real economy. 

The most common reason for failing to save for retirement was lack of money left over at the end of the month (30 per cent) whilst 15 per cent blamed it on the burden of house prices and the same amount cited that paying debts will be the main obstacle.

AXA says such decisions highlight the extent of the difficulties facing families with higher than average incomes.

The findings come as the group launches the AXA Financial Task Force, which will bring together some of the UK’s leading economists, psychologists, industry experts and public policy influencers to uncover the financial problems facing Middle Britain and what steps can be taken to solve them.

Over the next 12 months the AXA Financial Task Force will define the specific financial issues facing these families and propose ways to overcome the financial apathy that is rife within this group of people.

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