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Average worker’s savings would last just one month

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The average British worker has just one month’s savings to maintain their lifestyle if their income suddenly stopped, a report reveals.

The survey of 2,000 people by insurer Legal & General found the average employee’s ‘deadline to breadline’ was 32 days.

However, more than a quarter (26%) said their current savings would last just one week or less.

The deadline rose to 36 days if people reined in their spending but still one-fifth (21%) would only be able to live off their savings for up to one week.

The average employee has just over £6,500 in savings, but believed they would need a further £9,830 to feel financially secure.

Nearly a quarter (23%) of people quizzed said they didn’t save any of their income each month.

Richard Kateley of Legal & General, said: “We merely rent our lifestyles and we pay each month for it through our earnings, take away those earnings and it may not just be your house that you are thrown out of, but your entire lifestyle.

“It is vital that individuals and families plan ahead for such a critical event, either by saving money each month to ensure their financial security or by speaking with an adviser about a protection policy that could support them in their time of need.”

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