More than one in 10, meanwhile, would resort to taking on debt to cope, with one in four working adults having less than £1,000 in savings. Over a third of those with non-mortgage debts owe up to £5,000.
While anyone can suffer financial hardship, self-employed people are especially vulnerable, the research notes, due to their less stable pattern of income.
Despite the greater risk, self-employed workers are less likely to have crucial safety nets in place. Just 6% of self-employed workers have an income protection product that they purchased themselves, compared to 16% of employees.
Income protection serves as a safety net that provides a replacement for your salary if you are unable to work due to illness or injury. Protection insurance is seen by experts as a key step to achieving financial goals.
56% of UK working adults surveyed said they would feel more financially resilient if they had such a policy, a figure that rises to 60% for 25 to 44-year-olds currently without protection.
Please get in touch if you’d like to discuss our range of protection options.
As with all insurance policies, conditions and exclusions will apply
13 April, 2023