Families hit by growing divide over incomes

 

Families are divided by a growing income gap despite their typical earnings reaching a nearly three-year high.

The latest Aviva Family Finances Report shows that while more families than ever have savings, an increasing number have less than a month’s salary to fall back on, as fears grow over the rising cost of living.

The typical monthly income of UK families reached a high – since January 2011 – of £2,166  in December.

Family incomes have risen consistently during the last  18 months and by 12 per cent since January 2011 when the typical family took home £1,937 a month.

But divorced, separated or widowed parents have seen their monthly incomes fall by 14 per cent over the same period to £1,189.

The cost of living has worn away at family savings over the last year. Families with less than £500 put away jumped from 14 per cent to 30 per cent over 2013. Meanwhile, the percentage with less than £2,000 to fall back on climbed from 28 per cent to 40 per cent.

Louise Colley of Aviva said: “The cost of living is uppermost in many people’s minds this winter. Growing incomes mean some families will be starting the new year in a better financial position than they have become accustomed to in the last three years.

“But sadly the widening gap between the ‘haves’ and ‘have-nots’ means this cheery outlook will not be shared by all.”

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Customer Service Administrator

    £13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

    Recruitment Genius: Dialler Administrator

    £22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

    Ashdown Group: Contracts Manager - City of London

    £35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

    Guru Careers: Tax Manager / Accountant

    £35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

    Day In a Page