A lack of savings is a source of financial worries for many Brits. A new study, commissioned by Salary Finance, has found that almost 2/3 of people worry about how they will cope financially if they were to lose their job or receive an unexpected bill.
The poll of 2,000 adults revealed that 39% have less than £1,000 saved for a ‘rainy day’. Of that group 18% have nothing at all put aside for an emergency.
The danger of financial insecurity
This creates financial insecurity that leaves people unable to easily deal with financial emergencies. The survey found a large number of people unable to cope with the following expenses:
- A broken boiler (23%)
- Unexpected car repair bill (26%)
- A large utility bill (22%)
- Christmas (17%)
The Employer’s Guide to Financial Wellbeing found that money worries affect 40% of UK employees. For those that are already living payday to payday, the idea of something unexpected happening, such as a job loss or a large bill, can be a large source of stress.
The study found that, on average, employed adults believe their savings would last them around five weeks if they were to lose their job, with one in twenty admitting they would struggle to last a week without getting paid.
What this means for employers
Saving for a rainy day fund is difficult for many people. If it wasn’t, everyone would have one. However, providing a way for employees to build a savings buffer, or alternative ways to manage money throughout the month, can take some of the pressure off.
Helping avoid high-cost debt like credit cards, overdrafts and payday loans, especially if something does go wrong, can go a long way to reducing financial worries and improving financial wellbeing.
It’s our mission at Salary Finance to enable employers to provide products and services that improve the financial health and happiness of their employees. This survey goes further to demonstrate a great need for these types of employee benefits amongst the UK workforce.