Over half of British workers would not be able to manage financially if they were unable to work in the event of accident, illness or unemployment, according to research from Alliance & Leicester.
The survey of 1,610 working people found 51% would not be able to manage financially if they were unable to work and, of those, 46% said they would need up to £1,000 each month to supplement their current savings.
A further 23% said they would require £1,500 each month just to stay afloat while off work.
Of those who said they would be able to manage, 8% said they would have to spend their savings and 11% said they would need to rely on their partners’ income in order to get by.
One in five people (21%) have no insurance and hardly any savings to fall back on, while just 9% have an income protection (IP) policy sufficient to cover their outgoings.
Lindsey Henson, manager for protection at Alliance & Leicester, says: “With the average mortgage payment now at £592.78 a month and the average council tax bill coming in at £1,056, people would need at the very least £5,000 put away in savings to last for just six months out of work.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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