Research from Vitality suggests UK workers are overestimating how long they would receive full pay if they were off work sick, potentially leaving households vulnerable to an income shock.
The survey of 2,000 UK adults found that two thirds (64%) of employees said they know what sick pay they would receive if they were unable to work due to illness or injury, expecting, on average, around 12 weeks at full pay. More than a quarter (26%) expected 12 to 24 weeks at full pay.
Around a third (36%) of people admitted they either did not know or were unsure what their company sick pay policy is and more than a third of adults (37%) said they would not feel confident financially if their household income stopped unexpectedly.
Despite this concern, only one in 10 (10%) respondents said they currently hold an income protection policy.
When workers were asked how they would cover their outgoings if sick and unable to work, only 7% of respondents say they would rely on an income protection product. Instead, most expected to fall back on savings (62%), while one in five (20%) would turn to credit cards and almost one in 10 (9%) to short-term loans.
Andy Philo, director of strategic partnerships at Vitality, (pictured) said: “The data tells a story most people haven’t had reason to think about yet. Many assume their sick pay will carry them through a period of illness and that only tends to become real when something goes wrong and when the choices available have already narrowed.
“The conversations worth having are the ones that happen earlier, when people are well and have the time and headspace to understand what they actually have in place. That’s where real value comes from. People who engage with their cover regularly are in a far stronger position, financially and mentally, when they need it most.
“It’s something we think about a lot at Vitality. Helping people stay connected to their cover while they’re healthy, not just when they’re making a claim.”