Brits will go through at least eight ‘life-changing’ events that will shake our finances as well as our physical and mental health, according to new research.
These include two periods of serious ill health, a divorce, a redundancy, two career changes, the birth of a child, and the death of a partner.
The study by life insurance broker LifeSearch shows that one in four millennials and generation z’ers have already been made redundant, one in three have changed careers, and one in four have been through a divorce.
More than half say they’ve been through more financial instability than they expected and they worry about their family’s finances if something was to happen to them. The report points out that six in 10 people do not have any life or income protection, with one in five women leaving all financial planning to their partner. This is despite the number of female breadwinners rising 30 per cent over the last five years.
Harriet Turnbull of Bellevue Law said the report highlights how crucial it is for adults to protect their loved ones by setting up a will before it’s too late.
She said: “One worrying element, given the likely eight life changing events that the LifeSearch report highlights, is that at least half of them usually result in the need for a new will for the individuals involved.
“Having a new child, getting divorced, losing a partner all require an update to who will inherit your wealth. In our experience, it’s often only when people lose a partner or a parent that they then think about the allocation of their own wealth and assets which can be too late.”
Research has shown that nearly two in three (63 per cent) of UK residents don’t have a will. But without an up to date will your possessions, money, property, and even dependent children could be left to someone you haven’t chosen.
It’s well known that women still earn less and have less confidence in investing than men, and the burgeoning pension gender gap means most women will struggle to make ends meet as they grow old.
A recent investigation by social and business think tank RSA (The Royal Society for the encouragement of Arts, Manufactures and Commerce) and the Women’s Budget Group has found that more than 40 per cent of women in work would currently struggle to pay an unexpected bill of just £100, compared with 30 per cent of working men.
Harriet said it is important for women to get involved with family finances so they aren’t left vulnerable when one of these life-changing events happens. She said: “It would be great to see more women contributing to and driving the conversations around who inherits what.”