Families facing crisis due to a lack of savings

David Hill.LT32--009 PSB
David Hill.LT32--009 PSB

Larne residents are being urged to make sure they are financially prepared for any unforeseen event that could lead to a sudden loss of income.

The advice, from Larne financial planner David Hill, comes after the publication of a shocking new report from Legal and General, which indicates that within just 34 days of losing their usual sources of income, the average family in Northern Ireland will be reliant upon state benefits and friends and family for financial support, once their savings run out.

And Mr Hill has warned that “financial catastrophe” could be just around the corner for many Larne families due to a lack of savings.

He added: “People should always have a nest egg set aside for a rainy day.

“In this country, we tend to build up a lifestyle that isn’t essential, such as expensive mobile phone contracts or a subscription to satellite television.

“This inevitably means that people often struggle to put savings aside each month, which could lead to major problems further down the line.

“It seems to be a generational thing; older people who were brought up with a post-war mentality and know the value of money are more likely to save and less likely to spent frivolously than younger people.

“My advise is to plan properly for emergencies such as sudden illness or redundancy. The fact that the average family would only have enough savings to last them about a month should be a wake-up call for households in Northern Ireland to ensure they are taking steps to protect themselves from the worst case scenario,” Mr Hill concluded.