On the face of it, life today far exceeds the past. Our wages are higher, we work fewer hours and have more holidays.

However, people seem not to be revelling in it. Research by the BBC for the TV show the Happiness Formula reveals that only 36 per cent of Brits consider themselves to be very happy. This compares with 52 per cent in 1957.

Furthermore, in 1957 94 per cent of the country classed itself as being very or fairly happy. However, while the UK may not be beaming all the time only eight per cent said they were positively unhappy.

So what is going wrong and keeping Brits off the sunny side of the street? Recent research from the Centre for Future Studies and Standard Life shows that 70 per cent of Britons say a lack of financial security is a major stumbling block on the path towards happiness.

It was found that while over half of people have plans for the future, two-thirds do not have the finances in place to realise these aims.

For, first-time buyers the situation is far from clear, new research from Moneyfacts reveals.

In 1996, the average first-time buyer had an income of £17,308. Today, those stepping onto the property ladder for the first time earn £34,216.

However, while salaries have almost doubled property prices have trebled.

This means today a first-time buyer is paying £763.46 a month or 26.8 per cent of their income on mortgage repayments. A decade ago only 18.4 per cent of their income went on a mortgage, or £264.84 a month.

Andrew Hagger, head of news at Moneyfacts, said: "This statistic looks gloomy enough in its own right, but when you factor in additional increased expenses such as higher council tax and utility bills, it is no surprise that the UK is now faced with the current personal debt crisis."

Later in life, the prospect of happiness once retirement comes could also be difficult.

The Prudential has found today's twentysomethings are dreaming of fairy-tale retirements, but they could be in for a big shock by under-investing in their future.

Those in their twenties today say they are looking forward to an ideal home, the freedom to do as they please and long holidays in their retirement.

Ali Crossley, the Pru's director of lifetime mortgages, said: "It is good to see that today's young generation has such a positive outlook regarding their retirement life.

"However, the reality of this may be somewhat different if they don’t start planning to achieve their retirement aspirations. Many of today's pensioners are already struggling to pay for their day to day expenses – not to mention any ambitious dreams."

She added that the over 65s retirement fears and worries clearly show that reality is different to what the younger generation expects it to be, with money being an issue for retirees.

Overall, while life may be on some levels much easier today, the key to a happy future and present seems to be planning. In fact, the Centre for Future Studies study shows that 50 per cent of people admit good financial planning will help them on their way to happiness.


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