According to new research by Legal and General, the average UK employee only has enough money saved to maintain their lifestyle for a month if their income suddenly stopped.
The results from a survey of 2,000 people suggest that the nation is ill-prepared for a financial emergency, with many having only enough savings to last them a week, and some having none at all.
How does it differ by region?
As a general rule of thumb, it is recommended to have enough money saved to last you three months. As with all rules of thumb, some will argue you need more, and others less. The survey from Legal and General worryingly showed that:
· 26% of people only have enough money saved to last them a week
· 23% of people have no savings at all
The figures also showed that on average, the amount saved would last:
· Employees in England for 32 days
· Employees in Northern Ireland for 36 days
· Employees in Wales for 26 days
A breakdown of different regions revealed:
· Northern Ireland (36 days)
· Eastern England (35 days)
· East Midlands (34 days)
· West Midlands (34 days)
· Yorkshire and the Humber (34 days)
· North East England (33 days)
· North West England (33 days)
· South West England (32 days)
· London (31 days)
· Scotland (31 days)
· South East England (29 days)
· Wales (26 days)
Richard Kateley, the Head of Specialist Development for Legal and General, commented: “We merely rent our lifestyles and we pay each month for it through our earnings. Take away those earnings and it may not just be your house that you are thrown out of, but your entire lifestyle.”
This news echoes the results of a report released by Aviva in February 2017, stating that Britain was currently in the midst of a ‘savings crisis’. A survey showed that one in four families in the UK has less than £95 saved, putting them at risk should their income stop or an unexpected cost arrive.
If you are one of the 23% with no savings and would like to know the best way to prepare for a rainy day, then please get in touch. The most effective method to save depends on your personal circumstances, so speaking to an independent financial advisor could help you to make an informed decision.