Jessica O'ConnorAlmost half of young adults in the UK rarely or never put money aside in case they are unable to work, according to research from the OneFamily Group.
The research, conducted among 18 to 40-year-olds, found that while 51% of respondents said they save for periods when they may be unable to work due to illness, injury or redundancy, 44% said they rarely or never do so.
This suggests more than seven million young adults could be left financially exposed if their income were suddenly disrupted.
The findings also revealed a clear gender divide.
Over half of men (56%) said they put money aside for this purpose, compared with 45% of women.
Meanwhile, 48% of women said they rarely or never save for time off work, compared with 40% of men.
Financial vulnerability was particularly pronounced among those living with long-term health conditions.
Among young adults with physical or mental health conditions lasting 12 months or more, 53% said they rarely or never save for periods when they may be unable to work, despite being more likely to face interruptions to their income.
Housing status also appeared to play a significant role.
More than half of homeowners (57%) said they save for potential loss of income, compared with 45% of renters.
Half of renters said they do not put money aside for this reason at all.
Single people were also less likely to save than those who are married.
Only 43% of single respondents said they regularly or often save for a financial emergency, compared with 63% of married respondents, despite singles being more likely to lack financial support from a partner if their income stops.
Ryan Griffin, protection director at OneFamily, said: “These figures are concerning and show that many young adults in the UK don’t have any form of financial safety net.
“Life is unpredictable – for example you could be made redundant or find you have a health condition that impacts your ability to work, so this is a real risk in terms of financial vulnerability and exposure.”
He added: “Putting money aside for such circumstances can seem a big task, especially if finances are already stretched, and it is easy to have the ‘it won’t happen to me’ view.
“However, a few pounds a month can make a big difference in the long run, whether you put it in a savings account or buy a product that protects your income.
“Unemployment rates are sitting at a four-year high, so it’s really important to have a nest egg put aside for emergencies and to protect yourself, as we never know what is around the corner.”
