Building on Demos’ significant existing body of research in this area, Next Steps for Financial Resilience sets out how Government and business can better work together to ensure that Britons’ personal finances are flexible and resilient enough to protect them from economic shocks.
Supported by Legal & General, the paper brings together expert views from politics, business, academia and the charity sector, arguing that too many families are currently inadequately equipped to respond to unexpected changes in earnings, such as sudden job loss or illness, nor to transition between major life stages carrying new financial demands, like parenthood or retirement.
As Britain moves into a period of considerable economic uncertainty, the ability to adapt to sudden changes will be crucial to protect families’ long-term financial and emotional health. A financially resilient population also provides enormous benefit to public purse, relieving the pressure for the welfare state is to provide emergency protection to those experiencing sudden financial difficulty.
The paper proposes a series of interventions Government could take, in collaboration with business, to improve financial resilience and is available to be read here.