Press Release
Newsroom Combined Insurance in the Press
Brits have just 12 days to financial ruin (25/07/2008)
More than a third of the Britons (34%) would face financial ruin after just twelve days should they suffer a sudden loss of income according to the latest research from Combined Insurance.
At a time when many companies are announcing a wave of job losses and stepping up their cost-cutting in the wake of the credit crunch *, Combined Insurance has discovered that few Britons are financially prepared for the worst, should it happen to them.
The community insurer asked a GB representative sample of 1,926 adults how much money they had in savings that they could access quickly in the event of an emergency.
The findings show that more than a third of people (34%) in the UK have £500 or less tucked away for a rainy day. With average monthly expenditure exceeding £1,281**, this leaves many Brits unprepared for a financial crisis; only able to survive for just 12 days before their finances run dry.
In 2006 Combined Insurance’s research found that half of the population (52%) could survive financially for just 17 days*** (with average monthly commitments standing at £954pcm). These results give a measure on how the cost of living hikes are placing a squeeze on millions of families.
Who would survive a financial emergency?
-
Young people are the most at most risk; over a third (35%) of 18-24 year olds have no savings
at all and over half (51%) of them have just £500 or less tucked away for emergencies. -
Worryingly, one in five (20%) Brits over the age of 55, who are entering retirement, only have
access to £250 or less should they fall into financial difficulty. -
Women seem more vulnerable with almost a third (30%) of them having no savings at all,
compared to just 21 per cent of men. -
Those in the West Country are the most financially prepared; over a third (34%) have more than £3,000 in savings, allowing them over 2 months to get back on their financial feet. By comparison only 13 per cent of those in the North East have access to the same amount of cash in case of an emergency.
Nigel Brittle, Director at Combined Insurance commented:
“Our latest findings show how serious a loss of income could be for a large number of people in this country. It seems that many people are living on the edge, financially, and are concerned about how they will meet their financial commitments. We would urge Brits to protect their most important assets; their health and their income, in case the worst should happen. Combined Insurance can help make a bad day better by providing insurance cover to protect against an unexpected loss of income.”
For more information, regional findings or to arrange interviews please contact:
Connie Jackman / Guy Bellamy
FD Consumer Dynamics
020 7269 7190 / 7265
Connie.Jackman@fd.com
Notes to Editors
Sources
* ‘City braced for wave of job cuts’, The Daily Express, 24th June 2008, Peter Cunliffe Deputy City Editor.
** Research was carried out by YouGov between 21-23 May 2008 among a GB representative sample of 1,983 people. Respondents were asked how much they spent each month on household bills.
*** Research was carried out by YouGov amongst a GB representative of 2,000 people in April 2006.
The days to financial ruin was worked out by dividing the total monthly outgoings (£1,281) by 31 (days in the month) which comes to £41 per day. Since over a third (35%) of Brits have £500 or less in savings, this was then divided by 41 to achieve the amount of days (12.1) they would be able to survive financially.
About Combined Insurance
The Combined Insurance website (www.combinedinsurance.co.uk/toptips) offers Britons tips and financial advice when it comes to staying afloat during the current economic climate, as well as a financial calculator, so that Brits can see how long they would survive for if they experienced a sudden loss of income.
1. Since 1919, Combined Insurance (www.combinedinsurance.co.uk) has specialised in bringing affordable, quality insurance products to individuals and families - and currently provides supplemental disability, accident, health and life cover to over 3.5 million policyholders. Combined Insurance has never forgotten its roots and today operates face-to-face in local communities – just as it has done for the last 90 years. Combined Insurance is a member of the ACE Group of Companies.
2. About ACE - The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), a component of the Standard & Poor’s 500 stock index, the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at www.acelimited.com.
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