Financial resilience remains a challenge

One in five workers would rely on their partner’s income or savings if they were unable to work, according to a recent report1 that paints a worrying picture of the nation’s financial resilience.

More than one in 10, meanwhile, would resort to taking on debt to cope, with one in four working adults having less than £1,000 in savings. Over a third of those with non-mortgage debts owe up to £5,000.

Self-employed issues

While anyone can suffer financial hardship, self-employed people are especially vulnerable, the research notes, due to their less stable pattern of income.

Despite the greater risk, self-employed workers are less likely to have crucial safety nets in place. Just 6% of self-employed workers have an income protection product that they purchased themselves, compared to 16% of employees.

Safety net

Income protection serves as a safety net that provides a replacement for your salary if you are unable to work due to illness or injury. Protection insurance is seen by experts as a key step to achieving financial goals.

56% of UK working adults surveyed said they would feel more financially resilient if they had such a policy, a figure that rises to 60% for 25 to 44-year-olds currently without protection.

As with all insurance policies, conditions and exclusions will apply

1LV=, 2023