37% of women in the UK, aged between 25 and 44, have financially supported another family member who isn’t their child or partner in the last year, according to new research from Aegon UK.
The latest findings of the ‘Protection matters: does women’s financial planning match their priorities?’ report highlights that of this group, 27% have given money to either their own parents or their partners’ parents in the last year, and a further 10% financially supporting another family member.
This squeezed generation of women are already likely to be under significant pressure both financially and in their day-to-day lives, without the additional burden of supporting their loved ones. Some 38% have monthly mortgage payments to meet and 27% have rent to pay.
Women aged 25 to 44 are also known to be under greater stress than both their younger and older counterparts, with many facing important life decisions, from family planning to considering the cost of long-term care for their parents, or how to save for a home deposit or retirement.
On average, monthly household running costs for 25 to 44 year olds total £1,368 and with 37% of these women financially supporting another family member it is likely there will be significant pressure on their monthly income.
Despite these responsibilities, 46% of 25 to 44 year olds don’t have protection insurance.
If they were unable to work for six months or more, 43% of women in this age bracket would rely on their own savings to meet financial commitments. However, 25% of women aged 25 to 44 believe that their savings would only last between one and three months, and a further 21% can only see their savings lasting up to six months. If these savings had to stretch to support other family members, in addition to themselves, it’s likely they wouldn’t last as long as they estimate, Aegon claims.
Stephen Crosbie, protection director at Aegon said: “Women today have a great burden of financial responsibility, with their income being heavily relied upon for, not only day-to-day expenses, but also supporting their wider family members financially.
“The problem comes when this income drops unexpectedly, however the reality is that unexpected illness or accidents occur every single day. Putting protection in place can act as a vital financial safety net, ensuring that bills and mortgages are paid. While the protection itself won’t support other family members directly, it takes the pressure off meeting monthly expenses which in turn enables people to continue supporting their loved ones, even if they’re unable to work.
“It’s important to remember that this peace of mind doesn’t have to cost a lot − for as a little as £7.01 a month, women can be safe in the knowledge that should the unexpected happen the financial burden is taken care of.”