The latest Deadline to Breadline report has just been published by Legal & General. This annual publication looks at the state of the nation’s finances through a series of surveys and always throws up some surprising facts and figures.
It’s not always good news either.
For example, in the years report, we’re told that:
- The average family income is now £35,000/year.
- One fifth of all UK households have no savings at all and for those that do the average value of their savings is £2,700.
- The average family is only 24 days from the breadline (that means having no money at all) and perhaps surprisingly families in the South East are the most at risk, being only 10 days away from the breadline.
- The self-employed are the most secure – on average being 45 days away from the breadline.
- It would now take the average family 14 years in order to save the equivalent of one year’s salary.
- Only 15% of families think that Covid-19 will affect their ability to work – that seems to indicate that the majority of people think that they could cope with it.
- The “item” that most families would NOT part with no matter how hard their financial circumstances is …. Broadband! Closely followed by heating and then their phone!
- Two thirds of households are managing some level of debt and 10% of households have debts of over £10,000.
- However, during the pandemic almost 60% of families say that they have been able to focus on paying off debt.
- The average family with a mortgage earns over £44,000/year.
- Shockingly, six times more people have home contents insurance than income protection cover, despite the fact that over half of people are most concerned about losing their job if they were ill or injured.
- In fact, four times more people buy pet insurance than income protection insurance!
- On a positive note, recent research from Progeny showed that over 40% of 18-34-year olds had a financial adviser which is higher than many had imagined. That’s compared to only 17% in the 45-54 age bracket, who probably need one more coming up to retirement.
The report has been going for 8 years now and always throws up interesting insights. The purpose is to bring into focus the need for families to think about protecting their income through an insurance product. Obviously this is something that we can advise on as Financial Consultants.