New research by Royal London has suggested that 5.8 million renters don’t know how they’d cope if they were too ill to work. The survey revealed that almost half (48%) of working private renters have never thought about how they would cope financially with a long-term illness. In addition to this, 39% of this group have no savings to fall back on at all, compared with 23% of the wider population.

While 58% of renters do have some savings (Under £2,000) this wouldn’t offset the average debt per renter, which sits at over £4,600. Indeed, 32% of working renters owe between £2,000 and almost £10,000, with 14% owing £10,000 or more. This means that savers wouldn’t have the savings to keep themselves covered during periods of illness or unemployment and they wouldn’t have the savings necessary to pay off their debts.

Asked what they would do if they were unable to work for three months or more, 48% said they’d apply for state benefits, while 45% stated they would reduce their household expenses and 36% said they would use their savings. Only 4% mentioned income protection.

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