Brits '30 days from financial ruin'

14 August 2006
According to the findings of Prudential UK, many Britons who rely heavily on their monthly pay packet and live hand to mouth without savings are permanently one month from financial crisis.

The results of a survey conducted by the financial group showed that the equivalent of 2.9 million Britons felt in "imminent danger" of losing their job, while over one-third (36 per cent) of the UK population had little or no savings to fall back on.

Rachel LeBrocq, a spokesperson for the Building Societies Association (BSA), said that people should always maintain a savings and investment habit as something to fall back on if and when times get hard.

"I think the key point this raises is that everyone should try to build a savings nest egg as life doesn't always run smoothly," she said, noting that a sudden drop in income or loss of employment has the potential to severely upset the proverbial applecart.

Ms LeBrocq said that "getting [into] the savings habit" from a young age was important, as people could reap the benefits throughout their lives by sticking to a savings mantra in later life.

"BSA research shows that 45 percent of child savers stayed with their society into adulthood, as savers," she concluded.

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