Insurance expert warns Shropshire workers to get financial priorities in order
An insurance expert has called on Shropshire’s workers to ‘plan wisely’ for their futures after it emerged a large percentage of the UK’s employees don’t have a back-up plan for an unforeseen drop in income.
The warning comes from Edna Maule-ffinch, a Midland-based independent insurance consultant with Chase Templeton who, following the recent release of government data, believes far too many employees and the self-employed rely purely on savings to bail them out at times of unexpected long-term sickness.
Ms Maule-ffinch, a resolute supporter of Shropshire commerce, has spoken out after figures released by the Office for National Statistics and the Health & Safety Executive showed 28 per cent of UK households have less than £250 in savings for a rainy day.
She is ‘alarmed’ with the numbers which also highlight that with one million people taking time off due to sickness each week, 17,000 never actually return due to ill health.
Ms Maule-ffinch said: “It’s understandable that workers across Shropshire have been far more concerned with keeping their jobs than anything else over the past 12 months. However, these latest figures are alarming as they demonstrate people across the county must change their financial priorities.
“Shropshire helps provide an important slice of the UK’s economic output. But we have taken a battering during the recession and it’s clear that many of those who are lucky enough to still be in work, or who are self-employed, have not planned wisely for the future. The majority haven’t considered the security and peace of mind low-cost income protection policies provide.
“Instead, many have been relying on short-term savings should they be faced with long-term sickness. That’s an unsustainable situation.”
Ms Maule-ffinch said that some workers were becoming more insurance savvy but placed the self-employed as the most ‘vulnerable’.
She continued: “There are positive signs here in Shropshire that workers are beginning to acknowledge they are under-protected and realise there is more to think about than just the ‘cornerstone insurances’ such as life cover.
“But they must plan wisely – especially the county’s self-employed who do not have the safety net some employers may offer.”
Ms Maule-ffinch, who has 20 years’ experience advising businesses and individuals across Shropshire on insurance issues, added: “Overall, these government figures show that workers, especially the self-employed who rely on savings, are hugely exposed.
“I regularly meet workers from across Shropshire who have left work due to illness. Quite frankly it’s heart-breaking to learn that some have considered income protection but never took steps to turn that awareness into action. It’s a trend we must try to change.”
The statistics from the Office for National Statistics showed that there were four million self-employed people across the UK at the end of 2011 – four million people who potentially have no plans in place to protect their income.
