Maintaining a comfortable lifestyle is the nation’s biggest financial concern, with one in four funding this by cutting back on protecting the things they love in life.

Meeting the cost of a comfortable lifestyle is a bigger concern than dwindling savings for the nation, with 6.7m people happy to raid their savings and investments to cover day-to-day outgoings, according to a study published by insurance, pensions and investment group LV=.

The LV= ‘Look After What You Love Index’ tracks people’s key life priorities and how their financial concerns and actions match up to these. The research reveals that the pressures of recession have forced nearly two-thirds (64%) of people to reassess their life priorities over recent months, with spending ‘quality time’ with loved ones, plus family and personal health, now top of the list.

However, in spite of people’s clear focus on the simple priorities in life, the LV= study shows the majority are taking precious little action to protect and provide for the things they love most. More people have pet insurance than income protection, despite concerns about reduced income and redundancy.

Whilst maintaining current income is the nation’s fourth-highest priority, and one in three (33%) fear this could be impacted by the financial crisis, just 4% of adults say they have taken out their own insurance to replace their income if they were to become ill and unable to work. Moreover, only a third of adults (33%) have savings on deposit to act as a safety net, and a quarter (25%) have cut their insurance or started using their savings to help make ends meet.

Mike Rogers, LV= group chief executive, said: “Rather than doing away with valuable insurance or eating into savings, it is important for people to take stock of their financial situation. Everyone can take some financial steps, however small, towards protecting the things they love most in life. For example, insuring the breadwinners in the family for loss of income will make only a modest impact on most people’s finances, yet can provide vital assistance if the worst should happen.”
 

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