To be financially resilient The Money Advice Service (MAS) recommend that people should have at least 90 days’ worth of outgoings in savings.
The first report in 2017 was packed full of stats, facts and insights about the financial resilience of UK households and created a lot of interest in the market.
With the 2018 Income Roulette report launching soon, again, based on research conducted by YouGov and covering over 8,500 adults living in the UK, issues covered include attitudes and levels of confidence amongst millions of household and individuals.
Concerns about sudden loss of income
The report focuses on three groups, and one of them – the ‘Sandwich Generation’ - is struggling to make ends meet because they shoulder significant responsibility by having to care for children as well as an older relative or friend. The people in this group are extremely worried about what could be around the corner and are very likely to be significantly impacted by a financial shock.
Some of the key report findings (1) about the Sandwich Generation are concerning:
• More than half (52%) are worried about the consequences of a serious illness affecting themselves or their partner in the next 12 months (versus 35% national average).
• They are also nearly two times more likely to worry about the prospect of themselves or their partner dying and leaving the family without an income (29% compared to 17% national average).
• More than half (54%) say they want to save but can’t afford to do so – which also means they struggle to top up their pension pots.
The value of financial advice
Helping people to safeguard their most valuable asset – their income – is absolutely fundamental to their financial security and their ability to maintain mortgage or rent payments and other essential outgoings.
Research highlights that many people are unprepared for income shocks, however with good financial advice, they will be in a better position to understand the options available to them – such as Income Protection - and in a position to take steps to protect themselves.
Look out for the new 2018 Income Roulette report due out this month!
1 Methodology for consumer survey: YouGov, on behalf of LV=, conducted online interviews with 8,529 UK adults between 20th and 26th June 2018. Data has been weighted to reflect a nationally representative audience.
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