The double-whammy of austerity measures and a hike in the cost of living meant 44 per cent of people said their household was up to £250 a month worse off, and a further 18 per cent estimated they were between £250 and £499 worse off a month.
Further, 38 per cent have no financial plan in place. The study, from financial planning site rplan, showed 43 per cent have cut their spending to free up cash.
Paying off debts is the biggest problem, while others said paying mortgages and bills were their largest outgoings.
How much worse off a month households are compared with 2008
| Not at all, I am better off |
5% |
| I am no worse off |
20% |
| £1-£249 worse off a month |
44% |
| £250-£499 worse off a month |
18% |
| £500-£749 worse off a month |
6% |
| £750-£999 worse off a month |
3% |
| £1,000-£1,499 worse off a month |
2% |
| £1,500-£1,999 worse off a month |
1% |
| £2,000+ worse off a month |
2% |
Source: rplan
"A lot of people are reacting to change by 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," said Andrew Harris, director of rplan.
The study follows research from the Institute for Financial Planning earlier this week that showed half of people weren’t saving for retirement.