Family finances being stretched in unforeseen circumstances.

Research for Yorkshire Building Society has revealed that, if you are ‘average’, your savings would only last 52 days if you were unable to work. The average being monthly outgoings of £1,445, yet average accessible savings of just £2,474.

The majority of those surveyed (90 per cent) had no personal income protection in place and, if unable to work, 68 per cent either did not know how they would survive or had unrealistic expectations of how they would continue to meet their daily expenditure.

Scarily one in 20 people (5 per cent) said they would look into selling their home if they needed to access money quickly.

One in five of respondents (21 per cent) had no idea how they would cope if they were unable to work. While a further 19 per cent unbelievably said they would manage on state benefit allowances – with average weekly outgoings of respondents being £333.56 and current state benefit at £75.40, this approach would leave a weekly shortfall of £258.16.

Of those who did have some protection cover in place, the majority were focused on covering themselves in the event of death. Forty-seven per cent of those with cover opted for life insurance over critical illness,, which was favoured by 17 per cent. A further 10 per cent opted for income protection.

In the current economic climate, this research paints an extremely alarming picture for anyone without any protection insurance in place. Finances for many are already finely balanced due to the rising cost of living, and the research reveals that neither state benefits nor savings are viable options for the majority.

To get independent financial advice on your protection needs in order to assess how you would cope financially if you were taken ill or were unable to work contact ARK on 0161 303 9977 or email us. Giving you security with money advice without hassle or stress.

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