UK employees not financially prepared for redundancy

One in three UK employees have insufficient savings that they could fall back on if they were made redundant, research has found.

A survey by benefits provider Jardine Lloyd Thompson (JLT) found 31% of staff have little or no savings should they be made redundant. More than half (56%) of the 2,013 employees surveyed have less than four months’ salary saved.

Richard Roper, head of sales at JLT, said employers must provide financial education.

“For anyone with less than four months’ savings they should be focused on clearing any debt and building a sensible amount of savings before they think about other financial products,” Roper said.

“This creates the right foundation for future financial planning. In the current financial climate people should consider their savings in light of other financial pressures and what would happen if they were made redundant.”

Savings were highest in London with 35% of employees having between four and 12 months’ salary saved and 21% with more than a year’s salary saved.

As many as two-thirds of employers will be cutting jobs in the coming months as the credit crunch continues to bite.

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