You are here: Home - Saving & Banking - News -

Many unprepared for financial slings and arrows

0
Written by:
29/03/2007

Millions of people are failing to put aside enough money to cover themselves for a financial emergency, according to research from savings account provider Birmingham Midshires (BM).

BM asked 2,000 people which potential emergencies or surprise costs they would be able to afford should they suddenly have to do so.

The eventuality that people are least prepared for is caring for elderly relatives and meeting the costs of long-term care.

Ninety-five per cent of those surveyed said they would be crippled financially if they had to support an elderly relative in old age.

The situation is worst for those in their twenties, with 97% saying they would struggle to care for their parents should the need arise.

Next on the list is the cost of having a child, with 86% of respondents admitting that they would not be able to cope financially should they or their partner fall pregnant.

Eighty-nine per cent of young adults aged between 18 and 24 could not afford the cost of having a child, with the North East the least prepared region for this outcome.

Eighty per cent of people replied that they would be unprepared for unemployment.

Jason Robinson, director of savings operations for BM, said: “It is alarming that so many people could struggle if hit by a financial emergency or unforeseen cost.

“We would recommend that people save the equivalent of three months’ salary to use as a financial buffer should the need arise.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
FSA sends out stern warning to advisers on Sipps

The Financial Services Authority (FSA) has warned financial advisers not to kis-sell Self Invested Personal Pensions (Sipps) as part of...

Close