A majority of consumers are uncertain about how they would manage their finances if they were unable to work due to illness or injury, according to a new survey by Cirencester Friendly.

The research found that 56% of respondents could not identify what they would cut back on first if they lost their income, highlighting widespread financial vulnerability.

Among those who did indicate potential areas for cost-cutting, the most common spending reductions would be on eating out, takeaways, and TV subscription services. Other areas identified for economising included clothing purchases, gym memberships, and smoking or drinking.

However, only 3% of respondents said they would cut back on holidays first, suggesting that regular breaks are now considered more of a necessity than a luxury. This aligns with recent figures from Abta, which show that 84% of people in the UK take at least one holiday a year.

FINANCIAL INSECURITY

Cirencester Friendly said the findings reflect broader financial pressures facing UK households. Previous research has shown that nearly four in 10 adults have less than £100 left at the end of each month, leaving them particularly vulnerable if they are unable to work.

The survey also found that more than a quarter (27%) of respondents had taken at least a month off work due to illness or injury, reinforcing the real-world risk of income disruption. For those without savings or financial protection, even a short period without income could lead to long-term financial strain.

Despite these risks, many individuals lack financial safeguards such as income protection. The survey found that more than half of respondents would be interested in an affordable income protection product, rising to 74% among 18- to 34-year-olds.

Alan Waddington, distribution director at Cirencester Friendly, said the findings highlight the urgent need for greater awareness of financial protection options.

“It is worrying that so many people can’t identify anything they could cut back on if they couldn’t work for a month. It illustrates that a significant number of families have no financial safety net to fall back on.

“Providing affordable income protection to cover the basics and ensure a few weeks of illness or injury doesn’t leave families with long-term debts is becoming more and more important.

“As an industry, we need to work hard to make that vital protection more accessible, especially for younger workers who are most open to these solutions,” Waddington added.