Brits worry about social care and health costs with one in five UK adults not being financially resilient
Boris Johnson has announced an increase in NI, but we know that people are already struggling. One in five Brits say they are not financially resilient and wouldn’t be able to make ends meet without the help of a loan or credit card and 25% worryingly have no disposable income to fall back on should they need it.
MetLife’s own research found:
One in five (19%) UK adults – equivalent to more than 10 million Brits - say they are not financially resilient. While almost a third (29%) say their financial situation has worsened
Just 23% of women would be financially resilient if they experienced a loss of income, nearly half the rate of men (39%)
Women were more likely to feel resilient if they could rely on the help of a family member or partner financially (33% vs 25%)
82% of workers admit they worry about having to take time off work due to illness and/or injury since the pandemic started
As Brits’ voice their worries, one in four say they have no disposable income to fall back on
Brits say the following are the biggest stressing causing them to worry:
Being made redundant – 58%
Having to use savings to make ends meet – 55%
Having a reduced income – 53%
Getting into debt – 51%
Having to get a second job – 50%
Social care/health costs – 44%
Having to ask my parents/family for financial support – 39%
My investments losing money – 39%
Having to change my retirement plans – 38%
Losing my home – 37%
Not being able to afford my mortgage – 31%
Rich Horner, Head of Individual Protection at MetLife, shares three tips to help women feel more financially secure
Create a Budget : Setting and then maintaining a budget- be it weekly or monthly- is fundamental to understanding your spending capacity and ensuring you keep track of your current and future outgoings. A budget allows you to put aside saving towards a long-term goal, helps avoid overspending and prepares you for financial emergencies. If your bank does not have a spending tracker, check out budget tracking apps like Money Dashboard, Yolt or Plum to get you on track.
Saving to Spend: A savings plan not only offers a financial safety net in the event of a crisis, it also helps steer towards a long-term goal. With more women than men adversely affected during the pandemic, women were forced to re-evaluate their financial situation, as many grappled with furlough, job losses, a decreased income, and increased hardship. Creating a savings plan can help women financially plan for life events such as starting a family or buying a house.
Look into Insurance: In what has been a very uncertain time, our research found that 16% of people cite having a reduced income and having to dip into savings as a major concern for the next six months. Feelings of anxiety when it comes to money can be a good motivator for people to seek extra assistance, as nobody wants to have to worry about their long-term finances. For peace of mind, a good place to start is putting protection in place to cover larger monthly outgoings such as mortgage payments for homeowners. At a time when house prices are extraordinarily high and financial stability is low, it’s important to plan for every eventuality.
Rich Horner, Head of Individual Protection at MetLife, comments: “Many women have been forced to face their financial fears in the wake of the pandemic. Events have reminded us of the importance of having a plan in place.
“We need to support and encourage women to review what solutions exist to help protect them financially not just in the immediate future but also the longer-term. Financial protection – a safety net that in cases such as illness, time off work or an accident– can make a real difference. Ultimately, it’s important that people plan today to help their future selves to feel and become, financially resilient.”
