If you were to lose your income today, how long do you think you could last for?
Legal and General (L&G) recently published their Deadline to Breadline 2020 research, it revealed that the average household is just 24 days from the breadline – this is a lot less than the 90 days that many believe they can be financially stable for should they lose their household income.
Furthermore, your savings may not last quite as long as you’d expect, with the average household needing savings of over £30,000 to be financially secure and cover their outgoings for a year.
How many days do you think you could last? There’s some great tools out there to help you find out – try the L&G Deadline to Breadline Calculator to see how long you can maintain your current lifestyle should the worst happen.
Some interesting facts revealed:
- 1 in 5 UK households have no savings at all
- Most households surveyed would give up or cut back on food before their broadband or phone expenditure
- It takes the average household 14 years to save their gross annual salary and 12 years to save enough to live for a year
- Those aged 45-54 are most likely to have no savings at all
- 46% rank losing their income as their top worry if becoming unable to work
The research also suggests that 89% of people don’t see themselves as their largest financial asset. One of the biggest misconceptions is that people do not believe that their income is valuable. The average person earns hundreds of thousands of pounds during their working lifetime – so value yourself, you’re a financial asset worth protecting.
It needn’t be all doom and gloom however – there’s plenty of protection products out there that can assist you – for small monthly fees your income can be protected to give you the peace of mind you need.
Protection products can also be a lot cheaper than you might expect. The Association of British Insurers has put together an easy guide – Percy the Protection Calculator to help share some recommendations based on your individual circumstances.
We are here to answer your questions and help you find the right protection to suit your circumstances. If you would like to get in touch with us, please use the form below. We will look forward to hearing from you.