UK workers' financial confidence has strengthened, with 69% feeling financially resilient compared to 65% in 2023.
This is according to LV='s latest Reaching Resilience report.
However, the research also highlights a persistent protection gap, with nearly half of workers lacking insurance coverage.
The study reveals several encouraging trends, including a marked increase in those considering themselves "very financially resilient" - now at 18%, up 4% from last year. Parents of young children showed particularly strong improvement, with 77% reporting financial security compared to 63% in 2022, and 79% feeling more resilient than the previous year.
Despite this growing confidence amidst ongoing economic pressures, protection needs remain unaddressed.
The research found that 48% of workers have no form of protection cover. However, many respondents indicated that these measures in the form of income protection or critical illness coverage would provide them with security.
Half of workers, meanwhile, expressed interest in insurance covering monthly outgoings during illness and injury, as well as lump-sum payouts for serious illness or death.
Voicing the increasing optimism of people considering their financial priorities further, Protection Sales marketing director Mike Farrell shared how the research revealed insights about clients.
"Our research has revealed this as an ideal time for advisers to have meaningful conversations with their clients about the importance of protection. Whilst it's encouraging to see financial confidence on the rise, our findings show that the right protection could further strengthen this sense of security," he noted.
The findings come from a comprehensive survey of 2,720 UK workers conducted by Opinium for LV= in October 2024, examining financial attitudes across diverse demographic groups as they navigate the cost of living crisis and evolving economic conditions.
To know more about this study, visit https://www.lvadviser.com/knowledge-centre/reaching-resilience.
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