Average worker just one month from the breadline – L&G

The insurance firm has found that more than a quarter (26 per cent) of UK employees said that their current savings would last them just one week or less, highlighting that families across Britain 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 revealed that 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 per cent) said they do not save any of their income each month, so for these people their ‘Deadline to the Breadline’ could be tomorrow.

And 69 per cent 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.

While 16 per cent 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 per cent) 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.

L&G also found that 30 per cent 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.

A statement from L&G said: “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.”