Workers Worry about Redundancy Threats

Published on 1 January 1970 by Raffick Marday

Redundancy is still a worry for Brits, as many struggle to set aside savings for a period of unemployment, research reveals.

The research shows 29 percent of people feel their job is not secure over the next year, with older workers in the public sector feeling particularly vulnerable following the public spending cuts.

Thirty seven percent of public sector workers over the age of 55 admit they think the next 12 months is a vulnerable period for their job, compared to 32 percent of their private sector counterparts.

To cover a month of unemployment, HSBC research calculated £1,667.25 would be needed in savings to cover the average monthly income.

“Obviously we are in a difficult financial period with many people feeling insecure about their job prospects and experiencing a squeeze in their standard of living,” said Richard Brown, HSBC senior savings product manager.

“While spending may be curbed, it is important for people to put aside sums of money on a regular basis to build a rainy day fund.”

The latest Office for National Statistics (ONS) Labour Market Survey (February 2011) revealed 1.2 million people were out of work at some point in the last six months. Highlighting how many people’s savings pots are already low and could struggle to cope with another period of unemployment.

However, 48 percent of workers in both the public and private sector claim to be saving for redundancy or other unexpected life events. Although, most people admit they have had to increase the amount they spend on essential living costs.

Thirty one percent of workers say they are saving less than they did six months ago.

Prepaid Credit Card UK

If you are struggling to put away money in your rainy day savings pot, then a prepaid credit card could help you reign in your everyday spending.

The card works just like a debit or credit card - however the money that is loaded onto the card is the users’ own cash and they are unable to go over this limit without readjusting their budget.

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