If you were to lose your income today, how long would you be able to maintain your lifestyle?
According to the Deadline to Breadline 2020 research by Legal and General (L&G), the average household is just 24 days from the breadline. This is a lot less than the expected 90 days that many people believe that they remain financially stable if they were to lose their household income.
The average household needs savings of over £30,000 in order to be financially secure and to cover their outgoings for a year. This means that your savings may not last quite as long as you had imagined.
If you no longer had any income, how many days do you think you could last? If you’re curious about this, there are some tools out there which could help you find out. Try the L&G Deadline to Breadline Calculator to see how long you could maintain your lifestyle should you lose your income.
Here are some more interesting facts from the L&G Deadline to Breadline research:
- It would take the average household 14 years to save their gross annual salary and 12 years to save enough to live for a year.
- 1 in 5 households in the UK do not have any savings at all.
- Those that are aged between 45 to 54 are most likely to not have any savings at all.
- Of all the people surveyed, 46% of people rank that losing their income is their top worry if they were unable to work.
In addition, the research also reveals that 89% of people do not see themselves as their largest financial asset.
A common misconception that many have is that they don’t believe that their income is valuable. The average person earns hundreds of thousands of pounds during their working lifetime, so it’s important to value yourself as you’re a financial asset that is worth protecting.
On a brighter note, there is a variety of income protection products that can help you and give you the peace of mind that you need. For small monthly fees, you can protect your income.
Another misconception that people have is that income protection is expensive. However, protection products can be a lot cheaper than you may think. For more information about this, you can read the easy guide that the Association of British Insurers has put together in order to share some recommendations based on your needs.
If you would like to discuss your income protection needs with an expert, please feel free to get in touch with us.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
If you would like to book an appointment then please get in touch and we can arrange a suitable time to discuss further. We can arrange appointments at a place and time suitable to you, we can discuss your options over the phone or if you prefer email, then this is fine with us.