At the moment, you may not find yourself in a critical situation. Still, not having adequate savings eventually catches up to you. When you lack this type of cushion, especially when you are living paycheque to paycheque, all it takes is one event to set off a chain reaction of problems. The most common event in this situation is losing your job. When this occurs, there is no safety net to keep you from hitting the ground hard.
Consider this fact: according to a recent study, 42% of Europeans have no more than three months’ saving put away for a rainy day.
This fact highlights the reality faced by many working-age adults. Not having sufficient funds set aside for a potential emergency, such as a job loss, can quickly become a huge obstacle on the road to financial security.
This lack of savings can be seen in the fact that 7 out of 10 people in the UK do not hold any medium or long-term assets. Such assets include real estate, stocks, bonds, or any other type of investment that is not a liquid cash deposit in a bank account.
This is a telling sign as long-term assets are the kind that will protect you as you are nearing your retirement age. These types of assets not only able to generate income down the road, but they are also able to give you the security you need to provide for you when you can no longer work.
In this regard, it is forecasted that roughly 1/3 of retirement-age individuals (60+) will be renting by 2040. This is a telling sign as a total of roughly 414,000 retirement-age people were reportedly renting their primary residence, a figure which is up from 254,000 in 2007.
Based on these data, it is clear that the lack of savings is having detrimental to the overall effect on the quality of life of senior citizens. Therefore, it has become a substantial priority to address this matter at once. If left unattended, the numbers will only reflect an increasingly distressing reality for older people.