Financial resilience remains a challenge

One in five workers would rely on their partner’s income or savings if they were unable to work, according to a recent LV= report that paints a worrying picture of the nation’s financial resilience.

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.

Self-employed issues

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.

Safety net

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

1LV=, 2023

 

13 April, 2023

More news

6 February, 2024

It’s a constant bane for house sellers but it isn’t going away.
Gazundering is when a buyer reduces their offer at a late stage of negotiations to try to pressure the seller into accepting a lower offer. Searches for the term rose by 97% between January and Septem

31 January, 2024

Research* has shown that online searches for the phrase ‘when will mortgage rates drop?’ surged
Hopes that rates have peaked heightened in September. After 14 consecutive meetings where rates were increased, good news came when the Bank of England’s Monetary Policy Committee voted to retain Ba

22 January, 2024

A recent survey* has found that, despite the pressures on the property market, nearly a third of buy
44% of those with hopes to buy are portfolio landlords who already own at least 11 properties. When asked about their motivation, just over a third said they were driven by the fall in UK house prices