Over half of middle income households are vulnerable to losing their primary income, according new research.
The Coping Classes report, part of Friends Life's Vision of Britain 2020 series, found that 59% of those earning £25,000-50,000 would be unable to provide for themselves for longer than six months if they lost their main source of income.
The provider suggested that fuelled by the fear that over half of people unemployed in the UK have been so for over six months (52%), this group is now focused on reducing debt to stave off the threat of a potential financial survival gap.
Its study also revealed they feel disproportionately affected by public sector spending cuts, as part of the government's deficit reduction plans.
As a result, nearly 60% believe it is more important than ever before to invest in a pension and 84% said they are committed to avoiding taking on more debt in the next six months.
Nearly three-quarters added that they were putting plans in place to pay off most of their debt within ten years.
David Hynam, executive director, operations at Friends Life, said: "Five years ago the Coping Classes were comfortably off, but the recession and the effects of public spending cuts seemingly tilted against them has changed their status.
"We're now seeing them take clear, decisive and urgent steps to address this, in the knowledge that state support and assistance in many areas is unlikely to return.
"Most striking is the new attitude towards debt. We're witnessing a slow march down the debt mountain, which will have huge implications for financial planning and for the financial services industry," he added.
