A new report issued by Legal and General called “Deadline to Breadline” has found that the average working household in the UK is just 19 days away from being ‘broke’ i.e., not having enough money to pay for their subsistence living expenses.
The research and report suggest that financial resilience has fallen by 21% in the last two years, with people being just 19 days away from poverty compared to 24 days in 2020. This is based upon the average household having a daily expenditure of £93 and savings of just £2,431 and debts of £610.
This is and has always been a problem in the UK. People are not educated to save and plan. People are not educated to understand that their perception that they could survive for 2-3 months is not a reality, it is less than 3 weeks on average.
On a brighter note, those that have had longer to save or are perhaps higher up the pyramid at work, i.e., those workers aged 55-65 have financial resilience on average at around 99 days. This is still not enough.
Can’t save, won’t save. The problem is the same with workplace pensions, governments have gradually moved to compulsory enrolment is workplace pensions. Perhaps the same is needed for an additional ‘workplace savings scheme’, again with tax relief but accessible at any point or accessible based upon certain criteria should shock events occur in life e.g., a funeral. a new baby or in the economy as we have now with inflation and energy prices.