If new research released by Zurich UK is anything to go by, it looks like British adults have some thinking to do when it comes to their finances.
“It is worrying that one in three (34%) do not feel they would be able to recover from a financial shock or loss of income, and do not have the savings in place they need to feel financially resilient,” said Zurich UK’s Rose St Louis when the insurer revealed the findings of its Cost of Resilience study. “The most valuable asset we have is ourselves and our ability to generate an income. Therefore, it’s a concern that nine in 10 are likely to prioritise insuring their mobile phone over themselves.”
The report, which was developed with neuroscientist Dr Jack Lewis, also found the following:
- 24% of UK adults have no savings
- 15% have no idea whether they would be able to cope with a financial shock or not
- 11% have income protection
- 71% insure their homes; 70%, holidays; and 18% mobile phones
- 37% believe they need to have savings to feel resilient
“We need to encourage people to review their circumstances, assess the solutions available, and consider what support exists to protect them and reduce feelings of financial vulnerability,” said St Louis. “Products like an income protection plan, which is designed to provide a regular income if you are unable to work due to illness or disability, could help individuals to feel less vulnerable and more financially resilient.”
In Lewis’s view, meanwhile, there’s a need to educate people and help them to understand that there are products to ease the stress and worry of a financial shock and loss of income.