More than a third of UK employees financially fragile, Royal London finds

More than a third (35%) of UK employees are financially fragile despite being in work, according to research from Royal London.

The insurer’s Financial Resilience Report found that the average UK adult scored 33% on its Financial Resilience Barometer, placing them in the ‘Economically Exposed’ category.

Alongside the 35% of employees classed as financially fragile, a further 40% were considered economically exposed.

The research also found that 42% of people who had experienced a life event during the past two years, such as bereavement, divorce or job loss, fell into the financially fragile category.

Financially fragile households were found to have average cash savings of £1,136 and £77 of discretionary income remaining each month after essential spending.

Gregor Sked, senior protection technical manager at Royal London, said: “When people think about protection, they often focus on the biggest life events, such as death or serious illness.

“Those conversations remain incredibly important, but modern family finances can be knocked off course by a much wider range of pressures.

“Income has always been the engine room of a family’s finances.