New research from Irish Life finds that half of people working in Ireland feel they are just three paydays away from financial uncertainty.
The research shows that those working believe they would only be able to maintain their current standard of living on average for just six months if they were unable to work, with 1 in 6 (17%) adults feeling they could only survive for just one month.
The majority of families, 57% of 45-54 year olds and 47% of 35-44 year olds, also admitted their households would struggle if something happened to them, such as suffering a long-term illness or death.
According to the report, there is an increased worry amongst renters, as Irish adults who rent their homes believe they would only be able to survive financially for just four months if they could not work, compared to an average of seven months for home owners.
Furthermore, almost 2 in every 3 renters (63%) believe their landlord would leave no more than two months of missed or reduced rent payments before taking action against them; meaning that renters could potentially be just two paydays away from losing their homes.
Just over half (57%) of renters have no form of life insurance, specified illness cover or income protection, compared to just 34% of homeowners. Irish Life warns that this is alarming, as the research also found that there are now more rented households with children under the age of 18 (43%) than there are home owners with children under 18 (38%).
However, the research from Irish Life shows that people are starting to think about safeguarding their long-term financial security, as almost 1 in 3 adults are now considering buying income protection or specified illness cover in the next 12 months. Income protection pays out an income if you cannot work due to an illness or injury (but not if you become unemployed), and specified illness cover pays out a lump sum for a specified illness.
Speaking this week, Marketing Director of Irish Life, Brendan McEvoy said, "Almost half people in Ireland (46%) currently have no form of life insurance or income protection, so it’s encouraging to see that a third of people are now intending to get income protection and specified illness cover in the next year. However, the research findings are a stark reminder unfortunately that financial uncertainty may not be that far away for a lot of families, in particular for those that are renting."
Source: www.businessworld.ie