Quarter of Irish workers could only cope financially for a month if their income stopped, survey finds

'Income can be interrupted for many reasons, including illness, injury, or redundancy. But setting money aside in savings can be challenging once mortgage or rent payments, childcare, insurance and everyday household costs have been covered.'

A quarter of people in Ireland in their 30s and 40s would not be able to cope financially for more than a month if their regular income stopped tomorrow, a new survey has found.

The survey found that, on average, Irish people believed they would be financially stable for about five-and-a-half months if their income was to come to a halt.

But 20% overall said they could only maintain their standard of living for less than a month if their income dried up.

“While some households appear to have a reasonable financial buffer in place, the findings highlight how vulnerable many others could be if their income were to stop suddenly,” said Barry McCutcheon of Royal London Ireland, which carried out the survey.

“Income can be interrupted for many reasons, including illness, injury, or redundancy. But setting money aside in savings can be challenging once mortgage or rent payments, childcare, insurance and everyday household costs have been covered.” 

Men believed they could maintain their standard of living for six months on average, compared to five months for women.

People aged 55 and over were more likely to say they would cope for longer, at seven months on average, with those aged 25-34 saying they could maintain their standard of living for just four months.

The survey found Dubliners reporting themselves to be the most financially resilient, with more than one in five (22%) saying they could financially survive for over a year without income, followed by those living in Ulster (18%).

“While urban living can be more expensive, access to larger employment markets, stronger transport links, and a wider range of services may help some households feel better placed to manage financial shocks, whereas those in more rural areas may face added costs and fewer options,” Mr McCutcheon added.