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News & Features
www.babybuzzmagazine.com | Twitter: @BabyBuzzMag | Facebook: Baby-Buzz-Magazine 81
A major new report by
Aegon UK on how
women aged 25 and
over, and mothers of
under 18 year olds in
particular, are protecting
the things most
important to them, finds
that despite around
seven in 10 (71%)
mothers seeing the
financial security of their
children as among the top priorities in their life, almost half (49%) have
never discussed with their next of kin what would happen if they died.
This silence is serious, especially as 67% of women, and almost three in
four (72%) mothers, now work to support their growing families, and
seem to be underestimating their financial importance to the family
unit. Aegons research reveals that nearly three in five (57%) women
aged 25 and over dont have any form of protection cover, and almost
one in three (28%) of working women would need to rely on State
support if they were unable to work for six months. Worryingly, more
than half of women (55%) have no idea how much State support their
family would receive if they fell ill, with most completely unprepared for
the projected 21,100 annual income shortfall. When asked to think
through the consequences of being out of work for six months, over one
in four (27%) of working mothers surveyed admitted that heating the
home would have to be given up, and 23% of those paying childcare
would have to stop all paid childcare, as theyd have nobody to help
them pay these bills. One in 20 (5%) working homeowners would
consider selling their home to pay for general living costs.
Children are resoundingly the top priority for mums with children under
18. When asked what they considered to be priorities in their life, the
health (94%), happiness (91%) and financial security (71%) of their
children all came up as the most important. Yet currently, more than
two in five (41%) dont have any form of protection should they die or
be rendered unable to work. For stay at home parents, only around
one in 10 (9%) has critical illness protection, making them half as likely
as mothers of children under 18 (20%) to have this vital cover. If those
at home are unable to look after the kids, the potential added cost to
the working parent would be 7,549 per year (the average fees for one
child in part-time nursery and another in an after-school club). Despite
this, when given 180 to spend on anything they liked, only two per cent
of mums of children under 18 opted to spend it on a years life insurance
at 15 a month. One in four (25%) would put the money toward a
holiday, one in six would splurge at a restaurant (16%) and another one
in six (15%) would treat themselves to a new outfit.
Despite two in five (40%) working women, or just over a third of mums
(34%), claiming theyd rely on their savings to weather the financial
storm if they were unable to work for six months, nearly one in three
(30%) admits to having absolutely no savings whatsoever. A staggering
seven in 10 (70%) claim they wouldnt last six months living off their
savings were something to disrupt their regular income, and only 13%
say theyve enough money saved away to survive for more than a year.
Almost one in three (28%) working women admit theyd need to rely
heavily on State support if they were unable to work for six months.
Aegons research also found that more than half of all women (55%)
have no idea how little this State support pays out, with one in four
(25%) believing it to be more than 87.55 a week, and a further 30%
admitting they just didnt know. Against a womans average annual
income of 23,589 a mother would face an annual pre-tax shortfall of
21,137.50.
For two in five (41%) working women, an alternative recourse would be
major cutbacks to their living expenses if they were unable to work for
six months. Around two in three (69%) would give up on holidays, over
half (55%) would cut down on shopping trips and nights out with friends
(53%), and more than one in three (36%) would knock TV packages on
the head. Worryingly, more than one in four (27%) working mothers
with children under 18 admits that heating would have to be given up,
and a further 14% would have to stop all paid childcare. Six months of
not working is all it would take for one in 20 (5%) homeowners to
consider selling their home to pay for general living costs.
Nearly half (49%) of mothers with children under 18 admit theyve
never had a single conversation with their next of kin about what would
happen if they died. This is even higher for stay at home parents of
which 58% havent spoken to those closest to them. This silence is
perhaps one of the main reasons for the protection gap, but those
women without protection cover also cite affordability (37%) as a key
cause. Despite seeing their childrens financial security as a top priority,
more than a quarter (26%) dont see life or illness insurance as a priority,
and more than one in 10 (12%) admit theyve simply never considered
it. Almost one in five (18%) also think that insurance providers cant be
trusted to pay out on their policies, despite the fact that insurers in the
UK pay out 97% of claims (ABI, 2013).
Whether its a reluctance to discuss the unimaginable, a
feeling that protection isnt affordable, or simply a lack of
awareness about the services on offer, there are plenty of
reasons why women arent insuring themselves for the
benefit of their family. Theres a clear disconnect between
the peace of mind of protecting our most pressing priorities
and our behaviour as a consumer. At Aegon we want to see more
women and their families protected from the worst hands that life can
deal, and know we have our part to play in making these options both
easier to understand and affordable. Aegons ambition is to get the UK
ready for retirement. Being prepared for retirement is about more than
saving - its also about protecting what you have and planning for all
eventualities.
While women are increasingly in charge of family finances,
they are falling behind when it comes to thinking about what
would happen to their finances if they could not work or
couldnt take care of their children. I was struck by the fact
that almost three quarters of mums say that the financial
security of their children is a top priority, but one in three has
no savings and four out of 10 have no protection cover. Preparing
ahead for long-term illness, or worse, isnt just about assessing how
much savings you have or whether you should consider taking out a
protection policy. Its also about discussing who youd like to manage
your finances for you if youre unable to do so; who should look after
your children if both you and your partner die and what arrangements
need to be made after your death. Aegons report shows that half of
mums with children under 18 havent talked about their death with
their closest family. This type of conversation is never going to be easy,
but talking about it and putting plans in place will ultimately make things
a little easier for your family, should the worst happen. Its too
important for us to ignore.
For more information, please visit:
http://www.aegon.com/
http://savvywoman.co.uk/
Family Focus
Women not making a financial Plan B
www.babybuzzmagazine.com | Twitter: @BabyBuzzMag | Facebook: Baby-Buzz-Magazine 82
www.babybuzzmagazine.com | Twitter: @BabyBuzzMag | Facebook: Baby-Buzz-Magazine 83
www.babybuzzmagazine.com | Twitter: @BabyBuzzMag | Facebook: Baby-Buzz-Magazine 84