The Aviva Times of Our Lives Report was launched in Spring 2012 and tracks the key experiences, ambitions and concerns of people in the UK today as they journey through the ages of life. The report also looks at wealth accumulation and people's financial highs and lows, including how much extra income they wish they had to feel secure, and it provides an insight into their hopes and fears for their future and reflections on the past.
In the past six months, Britain's "squeezed middle ages" have become ever more squeezed, reflecting the continuing effects the current economic climate is having on people's lives, especially in the 35-54 age range. They have the most financial concerns and worries and are least optimistic about achieving their goals for the next two years.
The ‘squeezed middle ages' are also those with the largest ‘income gap' - the difference between the amount of monthly income that people currently have and what they feel they need to be comfortable. On average it has jumped 13%, indicating a considerable increase in pressure on everyone's finances. But the 35-44s feel they need an additional 32% of income to feel secure.
From income gap to insurance gap - for the first time the report looks at what people think their possessions are worth and finds that on average they are underestimating them by £10,000. This ‘insurance gap' exists at all ages but is greatest for the youngest age groups.
Of all people's possessions electronics are deemed the most essential, but it is the family car and home insurance that are the least likely items to be cut - reflecting how much value we place on mobility and the cherished belongings we collect throughout our lives.
Property ownership continues to be the biggest building block of wealth and generally most people think the first home should be bought at 25 - considering that first homes are now not generally bought until the 30s, this is one goal unlikely to be achieved.
And it is interesting to see that among the 18-24 age group, determination has risen in the past six months to achieve career goals and establish a strong financial footing from an early age, a wise move as they enter adulthood with more economic constraints than ever before.
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