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Half of workers would feel more financially resilient with protection in place

10/03/2026
FINANCIAL AND CORPORATE

New research from investment, protection and retirement specialist, LV=, highlights a distinct disconnect between the UK working population’s perceptions of their financial resilience and how prepared they would actually be to handle a protection event. 

The findings, published in LV’s latest Reaching Resilience report, reveal that a significant proportion of workers (68%) describe themselves to be ‘quite’ or ‘very’ financially resilient. 

Yet just over four in ten workers said they had no form of protection in place, including cover paid for by themselves or by their employer. The research explored what workers expect they would rely on if they were unable to work for two months or more due to illness or injury, with savings, employer sick pay and support from a partner emerging as the most common responses. This suggests a heavy dependence on alternative, and potentially unsustainable sources of income.

When exploring these other sources of income further, the findings show that for many workers this would be difficult to rely on long-term.
Savings levels remain low, with one in ten workers holding no savings at all, one in four having less than £1,000 and almost half (48%) holding less than £10,000, offering limited protection against even a short-term loss of income.

Understanding of support offered through employer sick pay schemes is also limited. One in five employees said they did not know what sick pay they are entitled to, while only a third are confident they are eligible. 68% of workers expect support to last 12 weeks or less, which could increase the risk of financial strain if illness or injury were to prevent them from working.

Households are also increasingly dependent on multiple incomes, with 41% of working couples requiring both incomes to meet monthly living costs, rising to 52% among first-time buyers. On average, UK workers support three people with their income, amplifying the financial impact of income loss across households. Nearly half of households would only be able to survive up to three months without an income, showing even a short-term loss in income would have an impact on overall financial security.

It was found that workers appreciate the role protection has in improving financial security, with half saying insurance that protects their monthly outgoings or pays out a lump sum for serious illness would make them feel more financially resilient if they couldn’t work for two months or more.

“The research highlights a clear protection gap between how financially resilient many workers feel and how prepared they actually are for an interruption to earnings. While many describe themselves as very or somewhat financially resilient, far fewer have any form of protection in place.

“For households managing ongoing debt and increasingly reliant on continuous income, the loss of earnings can quickly have serious financial consequences, particularly where savings or employer support are limited. As a result, it’s important for people to seek guidance from a financial adviser.”

Mike FarrellLV= Protection Sales and Marketing Director

When asked to consider their protection risks, 45% of workers said they don’t consider serious illness, death, illness or injury that leads to two months off work happening to them over the next decade. The report highlights an opportunity for advisers to embed tools such as a risk reality calculator into their advice processes, with 64% of workers saying that a personalised risk report could influence their decision to take out protection. 

Overall, the findings from LV’s Reaching Resilience research underline a persistent gap between financial confidence and the ability to withstand an income shock. Income protection can play a vital role in addressing this risk by providing a regular income if illness or injury prevents someone from working, reducing pressure on savings and helping households maintain financial stability during periods of income loss. An LV= Income Protection policy provides policyholders with access to LV= Doctor Services, including remote GP access, mental health support and additional wellbeing services.

“This data reinforces that income protection is a core component of effective financial planning, particularly in today’s uncertain environment. LV’s research shows a significant gap remains between financial confidence and real preparedness.

“Too many people still lack the cover they would need to remain financially resilient if their income were disrupted. These findings reinforce why protection should sit at the heart of financial planning and the critical role advisers play in helping clients build resilience that extends beyond savings and short-term support.”

Jo MillerManaging Director at the Income Protection Task Force
LV= supports advisers by providing a comprehensive range of products to protect people’s income as well as relevant insights, tools and resources to help advisers have impactful protection conversations. 

The full findings of the research can be found in LV’s Reaching Resilience report, which includes key insights on core client types such as first-time buyers, self-employed workers and parents.

Notes to Editors

  • For more information on the Reaching Resilience report or LV’s protection solutions, please visit our Reaching Resilience hub.
  • The data used in our Reaching Resilience research is from a survey of 2,567 nationally representative UK workers conducted for LV= by Opinium between 28 October 2025 and 7 November 2025.