Financial resilience continues to be a significant problem for the UK workforce, with one in five adults admitting they can only cover living costs with the help of loans or credit cards.
The survey, by MetLife fund that one in four (25 per cent) have no disposable income to fall back on, should they need it, while almost a third (29 per cent) said their finances had worsened as a result of the coronavirus pandemic. One in 10 said their financial situation had worsened significantly due to Covid-19.
It estimates that this means around 10m adults in the UK are not financially resilient.
The survey found that many people mis-judge their own financial security. MetLife found six out of 10 (60 per cent) respondents described themselves as financially resilient, but further questions revealed a third of these said they would only be able to meet ongoing living costs if they received help from a family member, their partner or somebody else.
As a result, a third (33 per cent) of those surveyed said they worried about their short term financial situation, although a slightly smaller number (31 per cent) said they were worried about their long-term financial position.
MetLife head of individual protection Rick Horner says: “The reality is that many people have no savings to fall back on. And unfortunately, this situation can easily spiral. The combination of worrying about having no disposable income and not having any savings can have a significant impact on mental health and an uneasy feeling of being extremely financially vulnerable.”
He points out that the last 12 months have worsened this situation for many people. He adds: “We need to support and encourage people to review what solutions are out there in the immediate future but also the longer-term, such as financial protection.”
