Half of adults ‘ignoring redundancy in money planning’

Despite fears of redundancy, many consumers are still not working a contingency into their money planning, it has been found.

New research has found that nearly half (48 per cent) of UK adults have not worked the possibility of redundancy into their money planning and savings, despite 29 per cent of people fearing they will lose their jobs within the coming 12 months.

This is according to a study by HSBC, which found 37 per cent of consumers are afraid their contract will end within the next three years.

Such misgivings about their occupational security is most high in older public sector employees, with 48 per cent of over 55s who work in a government-funded organisation harbouring these anxieties – which is head and shoulders above the 36 per cent of those of the same age who are employed in the private sector.

Almost one-third (31 per cent) of people who work in both sectors are saving less than they did six months ago, despite growing fears about how safe they are in their current position.

Senior savings product manager at HSBC Richard Brown said: "While this feeling of a lack of job security is particularly acute among older people in the public sector, everyone seems to be feeling the squeeze on their finances."

He added: "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. In times of uncertainty, it is all the more important that people have contingency plans to deal with any unexpected future occurrences."

However, fears regarding job security do not appear to have the same effect on the younger generation with 77 per cent of public sector workers aged between 16 and 24 claiming they believe their role is secure within the coming year, while 71 per cent of private sector workers feel the same way.

Similarly, 67 per cent of those who work for a government-funded organisation within this age bracket are happy that their job will be safe for the coming three years, however just 58 per cent of their private sector peers feel the same.

And those looking to increase their savings efforts in their budget management plans could follows some tips given by Moneysupermarket.com, advising consumers to watch the interest on their store credit cards and not drifting into unauthorised overdrafts. 

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