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Three quarters of Brits under the age of 35 could not handle monthly bills if they found themselves out of work – proof that protection is as critical as credit right now.

New research from Nationwide reveals that homeowners need on average £298.66 per week to survive financially – an amount which will be increasingly difficult to achieve in the current economic climate without a regular income and any form of protection insurance in place.

More than 60% of respondents said they would not be able to survive financially if unable to work because of injury or illness. Those aged 34 and under were most concerned, with three quarters admitting that they would not be able to pay all their bills if they lost income. This compares to 43% of people aged 55 and over.

Most worryingly, nearly a third of people said they would rely on State benefits to survive financially if anything forced them out of work for six months or more. However, when asked how much money they would need to ‘survive', 98% admitted that they would need over £100 per week, while Employment and Support Allowance currently offers up to £89.50 a week.

Robin Bailey, Nationwide's insurance director, says: "The results are illuminating. It clearly shows that, should the unexpected happen, most people do not have any cover in place. Instead, most people believe they will find a way to survive should something force them out of work. However, in the current economic climate, we may not be able to rely on such things as the value of our house, or even friends and relatives in the way that we did a year ago.

"The message is clear: get a secure plan in place and make sure that you have sufficient cover to support your financial needs."

SOURCE: Nationwide, 03/02/09

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