With the average UK employee only having enough savings to last 32 days at current lifestyle, it goes without saying that protecting your family should underpin your financial plan.
Legal & General’s latest research has shown that the average UK employee in the UK could maintain their lifestyle for just over a month – only thirty-two days – if their income stopped and they had to rely on savings.
They surveyed 2,000 full and part-time employees to assess their ‘deadline to the breadline’ and the results show a workforce worryingly close to some potentially difficult choices:
- The average UK employee has enough savings to last only 32 days, while in Wales the figure is just 26 days
- More than a quarter (26%) of UK workers said that their current savings would last just one week or less
- Even if respondents reined in their expenses, one fifth (21%) say their savings would be gone in seven days, and the average only increases to 36 days.
Every day, families across the UK face trials and tragedies that will financially affect the main breadwinner’s income. Yet the Legal and General research shows most have little to fall back on if the worst happens.
Average savings among those surveyed are £6,550, yet they believed they would need a further £9,830 to feel financially secure. Two in five (39%) have less than £2,000. Nearly a quarter (23%) don’t save any of their monthly income at all, and a third (33%) have less than £60 a week to spend after paying taxes, bills and housing costs. The average level of debt among employees, meanwhile, is about £4,675, and over a quarter (26%) used a credit card for essentials last month because they did not have sufficient funds available. This problem is exacerbated by the fact that workers are not well protected by insurance. Fewer than a third (31%) have life insurance, and fewer still cover against illness that stops them working (9%) or income protection (6%) if they lose their job.
Source: Legal and General Deadline to Breadline Report 2017