Working couples are becoming increasingly dependent on each other financially to make ends meet, according to new research.
Insurer LV= found that 3.2 million working couples in the UK are now financially dependent on each other to get by each month.
But worryingly, nearly a quarter (23%) of these people feel their household finances have worsened in the past two years, while one in four (xx%) say their dual income doesn’t go as far as it did this time last year.
The insurer also found that were these couples to lose half of their joint income, for example through illness or injury, then many would have to cut back significantly to keep their heads above water. One in three (31%) would have to apply for government benefits, while one in five (17%) believe they would have to downsize their homes to cope.
Chris McNab, head of life propositions at LV= says: “Millions of couples up and down the country need both incomes to pay the bills, with a significant proportion saying they’d have to make major changes if they had to rely on one income.
“Yet, the majority haven’t got any protection in place to support them if they found themselves in this situation. This is even more concerning in light of our Income Roulette report which found a large number of the population don’t have enough in savings to cope with a financial shock.“With many people saying their household’s financial situation has got worse over the past two years, many may be particularly concerned about money over this festive period. This is why people should take the time to make sure they are prepared to withstand a personal financial shock and the government’s new guidance body, when established, must do more to increase financial resilience.”
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