Legal & General's latest 'Deadline to the Breadline' research reveals that, on average, employees in the UK could be on the breadline in just 32 days.
No one likes to think about what they would do if the worst were to happen but worryingly more than a quarter (26%) said that their current savings would last them just one week or less, highlighting that families across the UK are at threat should the main breadwinner die or become critically ill.
The research highlights the significance and need for Protection, particularly Income Protection as it’s important to remember that we all have our own ‘deadline to the breadline’ and we really don’t know what’s round the corner.
View Legal & General's Deadline to the Breadline infographic here
Other key findings
•The ‘deadline to the breadline’ rises to 36 days on average if respondents reined in their spending.
•On average, UK employees have just over £6,500 in savings, yet they believe they would need at least a further £9830 to feel financially secure.
•Nearly one-quarter (23%) said they do not save any of their income each month, so for these people their 'Deadline to the Breadline' could be tomorrow.
•69% of employees would go without eating out to make ends meet, while only half (50%) said they would end subscription services such as Netflix and Spotify.
•16% of those surveyed had over £10,000 of debt to pay off, with the average respondent being nearly £5,000 in debt.
•A quarter (25%) of respondents have had to use a credit card in the last month to pay for essentials as they didn’t have sufficient funds to make the purchase.
•30% of UK employees have no financial back-up in place should they or a loved one be affected by a critical illness, disability, redundancy, salary loss or death.
What would trigger people to take out protection cover?
The UK still clearly suffers from a savings and protection gap. Many of us ‘rent’ our current lifestyles, paying for it each month through our earnings. Take that regular salary away and it may not just be their house that they lose, but their entire lifestyle. It is vital that individuals and families plan ahead for such a critical event to ensure their financial security. The main triggers for considering taking out a protection policy are:
•Having a child – 34%
•Buying a property 25%
•Illness – 24%
Use Legal & General's Deadline to Breadline calculator to show clients their potential situation, so you can help them decide how to protect their financial security today.