New research suggests UK consumers are ditching insurance policies because of the cost of living crisis, and few have pensions or investments to help them through the current climate. According to investment management company Charles Stanley, fewer than 1 in 4 people say they have life insurance to support their families in the event of their death. Just 7% have critical illness insurance in place and another 7% claim that they have income protection.
10% of adults say that have already given up insurance policies they have, such as life insurance, private health insurance, income protection. While 18% say they plan to give this up to keep up with the rising cost of living.
11% of investors admit to having given up investing and a further 17% are considering doing so soon. Just 40% of adults are aware that they have a workplace pension.
A fifth of people say they have a personal pension. Lisa Caplan, Director at Charles Stanley, said: “The findings of our recent study make for difficult reading. At a time when financial education is inconsistent and many do not have access to professional advice, people just aren’t equipped to manage the difficult months ahead.
"As a result many are resorting to radical changes to household finances in order to steady the ship - actions which could have long term ramifications for their financial health and wellbeing. We urgently need to take steps to boost financial resilience now.”
