Complacent UK Faces Future With Financial Headache

Research by leading life and health insurance specialist Scottish Provident, the protection brand of Abbey National, has revealed a picture of far-reaching complacency through the country when it comes to people protecting their financial future.

The research, carried out by MORI Financial Services on behalf of Scottish Provident, shows that the majority of British families are walking a financial tightrope, with nearly half the nation saying it does not have enough insurance cover or savings if the main wage earner lost their job.

The survey of families reveals that 41% of respondents would not have adequate protection insurance, savings or assets to draw upon if the main wage earner suddenly found themselves unemployed. Yet, the vast majority -- 76% -- dream of a life without too many financial worries.

Of major concern, 42% of those with children living in the household say they would not be adequately prepared financially if the main wage earner lost their job. And 10% of all respondents say they would have to sell the house or move to a smaller home if this happened and the main wage earner was not able to find re-employment soon after.

Other survey findings include:

• 40% of the sample interviewed said they dream of having a second home or holiday home in the future
• A third (33%) with children in the household dream of sending their children to fee-paying schools or colleges
• One in six (16%) Londoners say they are able to afford a second home or holiday home
• 76% of people said their financial goal in life was not to be rich, just comfortable without too many financial worries and 65% of those questioned believed they were likely to reach it
• Of those who aimed to be 'very rich', 55% said they will actually reach the goal while 30% said they wouldn't
• 71% said that paying the household bills was their biggest expense while food shopping came in second, with 70% citing this as the next largest expense
• Only 41% said they would be able to continue their current standard of living for 6 months or more if the main wage earner lost their job
• 78% still believe the state welfare system in Britain should provide an adequate safety net for modern standards of living but only 29% of the British public believes it actually does
• 7% of respondents said they would go on holiday in the future without taking out travel insurance

Technical details

A nationally representative quota sample of 993 adults aged 20 to 65 were interviewed face-to-face (in home) by MORI across 187 sampling points in Great Britain, between 22-28 August 2002. At the analysis stage, data was weighted to the GB population in order to correct any minor sampling imbalances.