Large employers such as the Royal Bank of Scotland are hitting the headlines with redundancy announcements.
Is this making the public panic into safeguarding their future? Unfortunately not.
A YouGov survey commissioned by Paymentshield earlier this year revealed that only 4% of people claimed to have income insurance, showing a dangerous lack of concern in an unpredictable economy.
It could be argued that people feel secure in their employment. But this goes against other reports looking at job security.
Recent research by HSBC showed that some 29% of the UK’s employees believe their jobs will not be secure over the coming year.
So is the lack of take-up of income protection down to confidence in the government to bail them out?
The YouGuv survey revealed that 36% of people would rely on benefits should they lose their job, yet 41% did not know how much they could claim.
Respondents estimated they would need £875 to cover their monthly outgoings. But worryingly, the weekly Jobseeker’s Allowance for over 25s is just £67.50.
Those lucky enough to be in full-time employment need to take responsibility for their well-being and plan for the future. At the same time, brokers need to raise clients’ awareness of income protection.
As affordability is a top priority, the industry needs to explain how the peace of mind that protection brings is a good return on the money spent.