Back then, just 22% agreed that it would be adequate but this has now jumped to 35%.
Likewise, only 40% of those surveyed now disagree that the state will be able to provide them with an adequate safety net for a modern standard of living, compared with 55% in 2003.
The only group that bucked this trend slightly, was the 45-54 year-olds, with just 28% believing that the state could provide an adequate safety net.
People living in Britain believe our homes are our castles according to new independent research commissioned by Scottish Provident. The majority of those homeowners surveyed (89%) believe owning your own home is important for a reasonable standard of living and out of these 12% believe that it is absolutely critical.
The “High Wire Britain” research revealed that would-be homeowners are not deterred by the prospect of debt. A massive 68% of all those surveyed believe that taking on substantial debt is a natural part of getting on the housing ladder.
Furthermore of those questioned, 61% in rented accommodation said they would be greatly affected if they were to suffer from a serious illness and were unable to work for six months or more, as opposed to only 54% of those who owned their own home. So homeowners may feel the most secure, but this sense of security could be misplaced. In reality they have the most to lose.
The High Wire Britain research, updated in late 2008, was previously undertaken in 2003, when Scottish Provident commissioned market research specialists Ipsos MORI to investigate consumer lifestyles and attitudes. The updated research has found that people are balancing on a financial high wire, with no safety net to protect the income that provides for the basic things in life, not to mention those little luxuries. We are living the “high” life - on a high wire juggling mortgage repayments, credit card debt and general living costs – with little or no safety net should we take a fall.
Despite some high profile cases of critical illness in the media, some people still believe that it just won’t happen to them. When questioned on what the probability is that they would suffer an illness that would keep them off work for six months or more, during their working life, 34% of those who expressed an opinion, believe the odds are 1 in 100. More people now believe that the state will provide an adequate safety net for a modern standard of living, than in 2003.
Owning their own home may provide your clients with a sense of security, but unless it is properly protected, it will be a false one. When facing a serious life event such as being made redundant or a debilitating illness, battling to keep a home can be incredibly stressful.
Your clients’ homes may be their castles, but it won’t protect them if the worst were to happen. Your client has to ask themselves – if it happened to them, would they rather lose their home or their mortgage?
So how can protection from Scottish Provident help?
Key finding
89% of homeowners surveyed think owning their own home is important for a reasonable standard of living.
Question
Did you know only 20% of homeowners questioned have a Critical Illness plan?
Message
Scottish Provident delivers on its promise of paying claims when people need it most. In 2008 alone Scottish Provident paid out over £114 million in critical illness claims*
Key finding
68% of people questioned believe that taking on substantial debt is a natural part of getting on the housing ladder.
Question
If your client was to lose their job through redundancy or illness how would they fund their mortgage?
Message
Unemployment Benefit as part of the Scottish Provident plan can help your clients think ahead and soften the blow if it happened to them.
Key finding
Only 26% of people questioned said they would give up having satellite/cable TV in the household to save money compared to 42% in 2003
What we say
If the worst were to happen, how would your clients pay for the basic things in life, not to mention those little luxuries?
Message
Scottish Provident’s plan is comprehensive and flexible – so it can adapt as your clients circumstances change.
Scottish Provident Support
Scottish Provident has invested again in this unique research as part of our commitment to this market and to you as advisers. The High Wire Britain campaign has been designed to help IFA’s discuss the need for protection with their clients and to assist you with sales. It will demonstrate how Scottish Provident can provide the safety net for your clients.
For more information about the research findings and available tools, visit www.highwirebritain.co.uk. You can also enter our latest competition - you may have completed the first stage, now see if you can take the High Wire challenge again and win a luxury weekend in a Von Essen hotel….
*Scottish Provident Critical Illness claims paid 1 January to 31 December 2008
Ipsos MORI interviewed a nationally representative sample of 2,024 adults aged 16+ across Great Britain, between 11th and 16th December 2008. Interviews were conducted using an in-home face to face survey.
Scottish Provident is a division of the Royal London Group which consists of The Royal London Mutual Insurance Society Ltd and its subsidiaries. The Royal London Mutual Insurance Society Ltd is authorised and regulated by the Financial Services Authority No. 117672 and is registered in England and Wales No. 99064. The registered office is 55 Gracechurch Street, London, United Kingdom EC3V ORL.
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