Some 35% of private renters in the UK would run out of savings in 10 weeks if they were unable to work due to injury or illness, research from an insurer found.
A study from Scottish Widows found that a further 32% of the 4,000 people polled would need to rely on their loved ones for financial support if they were unable to work.
Some 18% would need to take out a loan, while 16% would have to move out of their current rented home if they could not work.
More than half – 57% – of the renters polled said paying their bills would be their biggest concern if they faced financial insecurity or hardship.
Without work or a reliable income, 47% would be worried about keeping a roof over their head and 27% would be concerned about providing for their family.
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Feeling financially secure
Some 29% of respondents said being free from debt would make them feel financially secure.
For 23% of those polled, this meant having an emergency savings pot, while 27% defined financial security as having financial support from loved ones in times of need.
A further 16% said nothing would make them feel protected from potentially falling into financial troubles, which Scottish Widows said pointed to the insecurities felt by renters.
Rose St Louis, protection director at Scottish Widows, said: “Too many renters today have no form of financial protection in place should they need to take extended time off or away from work. Accidents or illness are tough enough, but adding in money worries can immediately make things far more stressful.
“More people are potentially being left exposed with no safety net as the number of those renting is rising. We need to consider what can be done to help inform and educate people on the importance of protecting themselves so they can focus on recovery and maintain their other financial commitments and outgoings. The industry must address how they can engage meaningfully with letting agents to bring tangible solutions to renters, as this will ensure they not only secure their desired property but also create and can maintain some financial resilience for the future.”
