Families Who Rely On Single Income Are Less Secure

Published on in Best Bank Accounts by

Despite the continued economic uncertainty, many families in the UK are leaving themselves open to difficulties by being under protected and underprepared when it comes to dealing with a loss of income.

A new report has shown that 56% of people not in retirement would only be financially secure in the short term (under six months) or ‘not at all’ if they lost their main source of income.

In many cases this is due to a reliance on a single income per household, as well as leaving putting any protection in place until they are on the property ladder.

The research from the fifth Scottish Widows Protection Report, based on research amongst more than 5,000 UK adults, reveals that 52% of the population in the UK with at least one wage earner in the household is reliant on a single income.

Only 5% of the population have taken out income protection to protect themselves in the event of being unable to continue working. The report also revealed that 89% of adults do not have critical illness cover and 63% don’t have life insurance.

The main reason that people take out policies such as life insurance, critical illness and income protection appears to be related to the purchase of property. However, the private rental market has increased by a quarter since 2008 and 61% of renters never expected to buy a home, the survey revealed.

Katya Maclean, Protection Expert at Scottish Widows, commented: “As the current generation of Britons finds it increasingly difficult to get on the property ladder, this has a knock-on effect on our financial priorities and our preparation for our families’ future.

“With the majority of the UK population not having any protection in place should they be unable to work, it is necessary for the industry to find new ways of engaging customers that are not centred around buying a home,” she explained.

Setting up and paying into a good bank account is a great way to build up a nest egg that can be used in the event of an emergency.

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