More than a third of us are living from pay cheque to pay cheque – and risking financial ruin. We show you how to steel your finances against the unexpected

Nearly 16 million of us admit we have little or no savings to keep us going if something went awry and we couldn’t pick up our monthly pay check, according to shock new research from the Prudential.

Despite this - and with unemployment rates currently at a four-year high - nearly three million people think they’re in “imminent danger” of losing their jobs.

And if that wasn’t frightening enough, nearly a fifth of the British workforce was signed off with a long-term illness last year. While some employers might continue paying you for a while if you’re ill, it’s likely to be limited and some employers may not pay anything at all.

Debt levels soar
The latest official bankruptcy figures show that one person is filing for insolvency every five minutes, with 26,021 people going bankrupt or taking out an Individual Voluntary Agreement (IVA) between April and June this year. These figures highlight just how many of us are already walking a financial tightrope.

According to the Pru’s research, only 27% of us have enough savings to see us through unemployment or illness and only 10% have insurance to cover us if things go wrong.  

“No-one likes to think they could get a severe illness or lose their job,” says the Pru’s Angus Maciver.

“But what if the unthinkable happened?  These times would be difficult enough without having to worry about covering the mortgage and potentially losing your home.  Yet without any savings or protection, many people put themselves in this vulnerable position.”

It’s no good crossing your fingers and hoping for the best.  We show you how to take action now.

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