Deadline to the Breadline

Financial resilience

The average household is just 24 days from the breadline, far shorter than the 90 days they believe.

Almost half of all households feel losing their income is one of their biggest worries if they are unable to work.
The average household has £2,729 in savings... yet the amount needed to feel financially secure is £12,207.
2 in 5 households have less than £1,000 in savings. In fact 1 in 5 have no savings at all.

Protecting what’s important

1 in 3 households don’t see the need for income protection, and do not associate it with losing their income, or being able to support their family.

31% say they don’t need income protection.
Households are 4 times more likely to insure their pet than their income.
They are also 6 times more likely to insure their home contents.

No broadband, no way!

In the event of becoming unable to work and forced to cut spending, the top household item that people would be least willing to give up is broadband.

When unprompted

35% think nothing will stop them working, showing that illness affecting our ability to work is not front of mind in our day to day lives.

However, when prompted

Almost half realise a serious illness could affect their ability to work. But only 1 in 5 say it might trigger them to buy income protection.

What would you rely on?

1 in 3 think they can rely on savings. But it would take the average working household...

4 years - to save what they say they would need in order to feel secure.
12 years - to save enough to cover a year’s living expenses.
14 years - to save their gross annual salary.

Protecting your most valuable asset

Despite an awareness of the impact a loss of income could have on their financial resilience, only 1 in 10 see themselves as their most valuable asset… an asset that could be protected.

Source: Legal & General Deadline to the Breadline survey conducted April 2020