UK workers have not made adequate financial security preparations in the event they said be unable to work long term due to illness or injury, according to new research.
The survey which was conducted by Demo, revealed that half (51%) of employees assume their employer would pay full salary for at least three to six months in the event of illness. This has led to a complacency among employees; one in four (23%) respondents admitted having no financial safety net in the event they would be unable to work long-term. Twice as many people choose to insure their pet (13%) or mobile phone (12%) compared with taking out personal income protection insurance to protect their monthly wages (six percent).
Should such debilitating illness or injury strike, over a third (35%) said they would rely on their own savings. However, when they were asked the current level of savings they could access in the event of emergency, half (49%) had less than £2,000 (CAD$3,078) to support themselves and their family – the equivalent of just one month’s average salary.