Furloughed workers have been forced to borrow money on loans or credit cards, or borrow from friends and family to sustain income levels during the pandemic according to new research.
Canada Life found that 44 per cent of furloughed workers surveyed have borrowed or have considered borrowing money on credit cards while 42 per cent have borrowed or have considered borrowing money from family and friends. Another 41 per cent have taken out or considered a loan to make ends meet.
Meanwhile, 34 per cent have either remortgaged or considered remortgaging their property to boost their income while furloughed. Younger furloughed workers have struggled more financially, with 49 per cent of 18-34 year-olds considering this option, compared to 36 per cent of 35-54 year olds and only 5 per cent of over-55s. However in this older age group 37 per cent have either accessed or considered accessing their pension pots.
Canada Life head of marketing, insurance Alice Watson says: “The furlough scheme has provided much-needed support to millions of workers across the country. However, with fragile finances, many have had to consider other sources of income to boost their incomes, whether that be turning to friends and family, looking at forms of credit or accessing the wealth from property.
“As we navigate through the pandemic, it is likely many people will feel additional financial strain as the furlough scheme draws to close this month.”