Legal & General’s latest Deadline to the Breadline Report issued this week reveals that within just 15 days of losing their usual sources of income, the average family in the East of England will be reliant upon state benefits and friends and family alone for financial support, once their savings run out.
Analysis in the report suggests that this deadline looks set to shorten further, as households are expecting to see both their disposable incomes and their savings fall in the year ahead.
On average, UK households estimate that they could get by on their savings for 57 days – over three times what the Legal & General figures show for the UK overall. The research, supported by analysis by the Centre for Economics and Business Research (Cebr) is based on a survey of 2,478 consumers. The shocking fact is that the 37 days only applies to those in the region who have savings. With the median household savings and investments for households in the East of England currently standing at just £620, a number of people in this region could find themselves on the breadline very quickly, in the event of a financial disaster.
Other key findings:
Households in the West Midlands have the longest average deadline (40 days), despite Londoners having the highest median savings levels (£1,500), as their monthly household costs are lower.
Median household savings in the North East, Yorkshire and the Humber – the areas with the shortest deadline – currently stand at just £260.
UK household members over 65 have an average deadline of 175 days – a staggering 168 days longer than 25-44 year olds – reflecting the greater accumulation of savings among older people.
35-44 year olds have the lowest median savings levels at £310, compared to the UK average of just £660. Interestingly, 25-34 year olds have slightly more savings on average than their immediate elders (£320).