"Nobody wants to think about something bad lying just around the corner, but the fact is, sudden loss of income can happen to anyone. Given that income from employment formed nearly three quarters (72%) of total household income in the UK in 2013/14*, it’s vital to look beyond the immediate and consider what back-up system is in place. Our research has found that nearly a quarter (23%) of employees would not be able to provide for their family if they were off sick for six months or more, showing not enough thought has yet been given to the ‘what if’. This is even more pertinent now that state support will be reduced.
“Relying on savings is a risky approach too, given that average household savings are at just £20.80 a month**. There is an opportunity for employers to take the lead and ensure their staff are financially aware and prepared for loss of income. Educating staff about affordable financial protection cover will not only support employees, but will make a huge difference to morale and staff retention – key business benefits. No matter what salary is at stake, it’s important everyone has a way to safeguard their income.”
* DWP Family Resources Survey UK, 2013/2014
** ONS Family Spending 2014
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