"[Protection is] for everyone to help ensure financial security, meet outgoings, and keep a roof over their heads at any stage of life."
- Rose St Louis, Protection Director at Scottish Widows
Of those surveyed (1,000), 56% of private renters in the UK don’t have any form of financial protection in place despite a third needing to take extended time off work. Scottish Widows defines a private renter as an individual who rents private housing as their main residence.
The data revealed that the average length of time people have taken off due to ill-health or injury is five months. Yet, additional research from the provider found 9% of people couldn’t last longer than a month financially supporting themselves and their household if they were unable to work for an extended period.
The impact of unexpected ill-health or injury is often underestimated; Financial Conduct Authority (FCA) figures suggest a third of renters have seen rent payments increase in the short term, leading to wider financial difficulties.
Absence due to ill-health or injury can lead to a loss of earnings, obstructing renters’ ability to make payments and support their wider financial security. 29% of private renters admitted they didn’t receive any support from their employer during a period of leave prompted by ill-health or injury.
Notably, almost a third (32%) have simply never thought about financial protection whilst 20% believe they have no reason to put protection in place. Unfortunately, 16% of private renters investigated it but assumed it’d be out of their budget.
Amongst private renters who do have protection in place, 20% said they took it out because they have children and 15% said they were prompted to invest in protection because someone close to them needed it, and they saw the benefit.
Given that the average age of First-Time Buyers (FTBs) is now 34 years old, Scottish Widows says it’s vital that more is done to support the UK’s growing cohort of private renters.
“Millions of renters are financially vulnerable, and this shouldn’t be ignored. Rising rents are taking up a higher proportion of people’s income, the Cost-of-Living squeeze hasn’t gone away, and for many, financial pressures aren’t easing,” said Rose St Louis, Protection Director at Scottish Widows.
“Buying a protection policy against serious illness or loss of income isn’t just for those who have children or have opted to buy a home and take out a mortgage. It’s for everyone to help ensure financial security, meet outgoings, and keep a roof over their heads at any stage of life,” she concluded.
