Quarter of People Have Savings To Survive Just 7 Days

Published / Last Updated on 28/05/2019

A Legal & General report has identified that a quarter of working people in the UK do not have any savings or a backup plan if they are affected by a long-term illness or incapacity.

Many employees pay for things monthly and if their salary was lost, many may lose their home and entire style of life.

The UK still is suffering from a void in the market for savings and protection.

People without protection:

  • 21% of people that haven’t got any protection in place said they would be interested and
  • 20% said they would take out life insurance

Protection and why do customers need it?

  • 23% of employees in the UK do not save any income each month
  • 26% of employees in the UK said savings would last them 1 week or even less. That is an average of employees only having enough savings to last them 32 days if they lost their income.
  • 60% of British people would struggle if they lost their income within 6 months. (Mintel Research)

Income protection and Critical illness cover can be better to take together as Critical illness cover mostly pays out in a large sum but there is no point paying off a mortgage if you cannot afford to continue paying bills and payments.  Income protection is designed to usually pay out a monthly replacement income.

Contact us for financial advice or why not try our calculators.

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