A couple of reports were published this week on how people feel about aspects of their finances in these uncertain times. First off, from the UK, came a report from Hiscox, the Bermuda-based re/insurer. It said that the recession has knocked the confidence - but not the cash reserves - of Britain's "working wealthy".

The Hiscox Wealth Review 2009 revealed that more than 2.5 million UK households are now identified as wealthy, with an average annual income of almost £93,000 (about $150,000), or almost three times the national average household income of £35,000 (about $58,000). But, despite many maintaining a healthy income, 95 percent of these people say they do not consider themselves to be wealthy.

I often hear this from people who are seriously rich. I sometimes wonder if it's public relations, or whether they genuinely believe it. One unpleasant woman I met said, when her family inherited more than $2 million: "We're not rich, just less poor."

The recession has apparently left its mark on the psyche of the working wealthy, with a lack of confidence impacting their perceptions of wealth and appetite for risk. While two in five said the recession has not had an impact on the amount of money they have to spend, almost an equal number said they are fearful of the future and have been steadily stockpiling cash.

Three in ten said they are taking fewer risks financially, compared to before the recession began, and a similar number admitted that they are taking fewer risks in all areas of their lives.

As a result, the working wealthy have made cutbacks across the board. Half reported cutting their spending on socialising and restaurants, on holidays (41 percent), on weekend breaks (43 percent) and on home decor (38 percent). One in three are spending more in discount stores.

A quarter said they had not been directly affected by the recession but feel they need to behave differently anyway. Furthermore, when they are spending, 28 percent said they are less conspicuous about it because they know other people that are struggling financially.

Despite owning valuable art (10 percent) and/or jewellery (11 percent), having savings of more than £25,000 (about $40,000) and going on two or more overseas holidays a year (both about a quarter of respondents), the working wealthy believe that to feel truly rich in 2009, they would require an average household income of £152,865 (about $250,000). If that seems like a lot, remember that the Brits pay income and other direct taxes that take away about half their income.

So here we have all these rich people whining about not being rich, yet two-thirds of them said they believe it is very important to be happy with what they do have, with many citing family (85 percent), health and well-being (80 percent) and new life experiences (22 percent) as top priorities.

The review also revealed that more than half think they will have to work past retirement age because of the recession; and more than one-fifth said the reduction in interest rates means their household now has more disposable income, i.e. the cost of servicing their debt has fallen.

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From the other side of the pond comes a report released by Prudential Financial, Inc. that shows that, feeling insecure about the future, Americans have a growing interest in financial products that offer guarantees, including life insurance.

I've not written much about life insurance, being a property/casualty man, but a column a few weeks back on the subject of life insurance produced a bumper mailbag, which tells me that Bermudians are interested.

The Prudential study, "Life Insurance - a Guarantee in Uncertain Times", found that 70 percent of those surveyed believe products with guarantees are worth the cost. In fact, 94 percent of those who own a life insurance policy value the guarantee it provides, according to Gail Van Dalen, vice-president of individual life insurance at The Prudential Insurance Company of America. In addition, Ms. Van Dalen said the study showed that 72 percent indicated that the economic downturn has "reinforced and deepened concerns about providing for loved ones". She continued: "Knowing their family will be protected provides peace of mind in an economy that has left many people feeling uncertain about their investments and financial future".

Additional findings in the report show that consumers value life insurance policy enhancements that go beyond the security of the death benefit protection. Early access to policy benefits in the event of terminal illness ranked at the top of the list, with 61 percent expressing interest in this feature to pay for medical bills.

Other guarantees that generated interest included:

• The ability to waive the premium if they become disabled (58 percent).

l Waiver of premium for up to one year on the loss of a job (55 percent)

• An increased death benefit, should the insured die in an unforeseen accident (54 percent).

Ms. Van Dalen said financial stability (90 percent) and reputation (82 percent) are important factors people consider when selecting a life insurance company in the current environment.

Recessions, especially very deep ones, do affect the way people think. Obviously, those who lose their jobs, or whose income is severely reduced, during a recession, are bound to think differently, but few escape the pain when a downturn occurs.

Only the very youngest among us will have escaped the experience. There are times when the money comes in, bills get paid, there may be enough for a new car, and everything seems fine; and other times, when making ends meet, no matter what your station in life, can be all but impossible.

It's easy to learn lessons when times are tough, but harder to remember them when things turn the corner. That's why you need to develop sensible spending and saving habits, so that whatever the financial weather, you're protected.

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And, finally, a short quiz.

Of whom did the Cherie Blair character in the movie "The Queen" say: "They live in a ludicrous cocoon of privilege and wealth ... I mean, they don't pay tax!"

(a) Bankers

(b) Bermudians

(c) The Royal Family