Over 18 million Britons fail the stress test
Some 37 per cent of British adults (almost two in five) currently describe themselves as either stressed or very stressed according to Scottish Provident's latest Financial Safety Net report.
A lack of financial stability is a key aspect of creating stress, as the number of people that are stressed increases for those that have no savings in place. Nearly a half (49%) of those with no existing savings are currently stressed or very stressed, while 47 per cent who cannot afford to put money aside each month describe themselves as stressed or very stressed.
When asked what would actually increase their stress levels some 59 per cent of UK adults, representing nearly 30 million people, said having no income would do this. However, this worry doesn't translate into people giving themselves a strong financial safety net, as a quarter (25%) of all Britons believe they would face money worries after just one week if they lost their job or regular income.
Susan Barclay, head of marketing at Scottish Provident, said: "It is no surprise given the current financial climate that many millions are feeling the pressure and becoming stressed. The soaring cost of living, coupled with concerns about job security, will lead many to question how they will be able to pay their bills against a backdrop of inflationary pressures and wage freezes.
"Having some savings in place is important in case your circumstances change in the current climate, and getting into the regular habit of putting some money aside is great, no matter how small. Protection products also provide the financial safety net that is necessary for workers to help stave future financial fears in case their current circumstances change, for example if they are suddenly hit with a critical illness."
The report found that an illness to either the individual or to one of their family members (62%) is the only thing that would prove more stressful than losing their income. Nearly half of Britons (45%) meanwhile, said that an increase in their bills or outgoings would be enough to increase their anxiety. Other reasons for becoming very stressed include people losing their job (37%) and having to take a pay cut (22%), while some 17 per cent said that they would get more stressed if they had to dip into their savings.
Despite these concerns over finances, many consumers are leaving themselves in a vulnerable position. An alarming one in three (31%) admit that they do not put anything aside in case of an emergency, whilst some 56 per cent of people do not hold any protection products in place, meaning they are depriving themselves and their families of key financial support should they lose their job, become seriously ill or even die.
Susan Barclay added: "Having a savings and protection structure in place is part of the overall financial safety net that individuals need to build up, to provide themselves and their families with the comfort they need that they will always be well cared for financially."