Millions of UK adults do not feel financially resilient and would not be able to manage a financial shock or loss of income, according to a new report by Zurich UK. Developed with neuroscientist Dr. Jack Lewis, the “Cost of Resilience” looks at the impact that money, including having products designed to protect and insure against loss, have on feelings of resilience.
According to the research, one in three (34%) adults, the equivalent to more than 17.6 million adults across the UK, say they would not be able to recover quickly from an unexpected financial shock, such as an unanticipated period without household income or a sudden need to spend a significant sum. A further one in seven (15%) have no idea whether they would be able to cope or not. Yet, the report found that almost a quarter (24%) of UK adults have no savings to fall back on and almost the same number (26%) do not feel in control of their life.
Also of the third of people also said they would struggle to recover from a financial shock or loss of income, only one in ten (11%) have Income Protection, a financial product that shields your pay against being unable to work through illness or injury.
Instead, people are more likely to have insurance for their home (71%), holidays (70%) and mobile phone (18%). The report also found that should an individual experience a financial shock or loss of income, UK adults would struggle to make financial sacrifices, with giving up the family home (51%), car (37%) and holidays (23%) proving the most difficult.
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