Recent research from specialist group risk insurer Unum found that almost half of UK workers have been off work for more than a week due to illness or injury at some point in their career with roughly 2 million individuals currently in employment having had to take six months or more off of work.
With this evidence identifying our need for financial protection Unum believe many UK employees seriously lack any sort of financial protection in the event something unpredictable leaves them unable to work. Unum found the average worker would only be able to survive financially for around four weeks without their full current salary.
Of the respondents over one fifth admitted to having no financial back-up in place at all, whether that be in a form of savings, relying on friends or family or an insurance policy such as income protection. Taking this as an average that is over 5.5 million UK employees without any form of financial protection.
Company Sick Pay
Are we sensible in thinking our employer will look after us should we be ill? Most of us believe we will receive at least four weeks of full pay should we be unable to work due to illness or injury. However Unum say the reality is often quite different showing that one in 10 who have been off work sick for over a week will not end up receiving full pay for any part of their absence.
Unums chief marketing officer said “Our research shows that too many people seem to be either unaware that they can take steps to protect themselves against an unpredictable event that can lead to the loss of their full income for a long period of time or are burying their heads in the sand and adopting an attitude of ‘it won’t happen to me. Either way it is really quite concerning.
Across the Nation
Looking at the research regionally, Unum’s research shows employee’s living in Wales and the North East could well be the most exposed, with over a quarter in both regions admitting to having no financial security net should they be unable to work. In contrast those in the South East and Scotland seem the best prepared, with only 17% and 16% of workers living in these areas, respectively, having no back-up plan.
Specifically looking at those without any financial security net, it seems the lack of protection should something happen could well test their relationship with those closest to them. A quarter of these individuals would have to rely on their partner and the same again relying on their family.
We are in a time where our reliance on the state has all but disappeared, to truly have peace of mind should you be unable to work you will either need to have a significant savings fund to rely on or alternatively a form of financial protection insurance such as income protection.
