Nearly a third (31%) of UK employees have little or no savings to rely on if they were made redundant.
More than half (56%) of employees have less than four months salary saved, according to a survey of 2,103 employees working in companies with 10 or more employees by Jardine Lloyd Thompson Benefit Solutions,
How much employees have saved also differs between regions. Staff in Northern Ireland are the worst savers, where 47% have less than a month’s salary saved and a total of 73% have less than 4 months. In contrast, savings were highest in London where 35% of employees have 4-12 months salary saved and 21% have over a year’s salary saved.
The survey highlights the need for workers to prioritise their spending by clearing debt and building a sensible amount of savings. Alex Tullet, head of benefit communication at JLT, said employees should be educated to understand and improve their immediate situation, so that in the event of redundancy, they are financially prepared.
“While as an industry we continue to emphasis the importance of pensions, before the uptake of pensions can improve people need to be financially educated to understand their immediate situation. As people move through their life there are different financial requirements, levels of disposable income and relevant financial products and benefits. Individuals need to be able to prioritise these whilst understanding immediate and future impact,” he said.
Richard Roper, head of sales at JLT, added that the current economic slowdown should force workers to plan for the future more than ever. “In the current financial climate, people should consider their savings in light of other financial pressures and what would happen if they were made redundant,” he said.