Wednesday 17 January 2018

Less than one in two employees view salary as a top financial asset

Employees ranked their pension as their third most important financial asset
Employees ranked their pension as their third most important financial asset
Ellie Donnelly

Ellie Donnelly

Less that one in two - 43pc - employees in Ireland see their salary as their top financial asset, according to research from income protection company Friends First.

The survey of almost 600 employees found that 67pc of respondents ranked their home as their most important financial asset, followed by their savings.

Employees ranked their pension as their third most important financial asset.

"When people think of assets they think of homes, savings and pension, with their salary coming in at fourth position," Karen Gallagher, protection director with Friends First, said.

"The fact is that, generally speaking, without their income they would have none of those assets."

The research also found that the majority of those in employment have heard of income protection (80pc), a figure which is significantly higher among people who have a pension.

Of those surveyed who said that they were aware of income protection, 60pc perceived it to be relevant to them.

However the research highlighted a gap between the attitudes of self-employed people and those in employment working for someone other than themselves, with 57pc of self-employed people of the opinion that income protection was relevant to them, compared with 63pc of people working for others.

When workers who considered income protection relevant to them were asked how long they could cope without their income, 44pc said for between three and six months, just under one in three said six months to a year, while less than one in ten people said they could sustain themselves financially for two years or more.

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