Many workers with significant housing commitments remain uninsured against loss of earnings, according to research from Shepherds Friendly.
Four in five full-time workers without income protection (IP) insurance are either renting or have a mortgage, according to new research from mutual society Shepherds Friendly.
The findings, published in the provider’s Reaching the unprotected report 2026, show that 32% of full-time workers without income protection are renters, while 49% have a mortgage or loan secured against their home.
The research also suggests concerns about income security remain widespread. More than a third (38%) of respondents said it was likely their income could be affected by factors outside their control within the next five years, compared with 21% who felt it was unlikely.
Inflation and rising living costs were identified as the biggest perceived threat to income, cited by 68% of respondents, followed by an economic downturn (60%). Illness or long-term health conditions ranked third at 51%, ahead of job loss or redundancy (50%) and concerns about AI replacing roles (48%).
Among younger workers, concern about illness and injury was even more pronounced, rising to 58% among those aged 18 to 24.
The report also found that one in five (20%) full-time workers aged between 18 and 64 had already experienced a period when they were unable to work and did not receive their usual earnings. Among 18 to 24-year-olds, this rose to 40%.
Despite this, take-up of income protection remains relatively low. The study found that just 16% of full-time workers currently hold an income protection policy, trailing ownership levels of products such as life insurance and health insurance.
Dan Simpson, chief commercial officer at Shepherds Friendly, said: “Rent and mortgage payments don’t stop when someone’s income does. Yet our research shows that many workers with these significant financial commitments have no income protection policy in place should illness or injury prevent them from working.”
Simpson also highlighted the role of awareness and understanding in take-up of the product.
“There continues to be misconceptions around what IP is, what it covers, and misplaced concerns that they may not be eligible.”
He added: “Workers are increasingly aware that their financial circumstances can change beyond their control in future, yet relatively few have taken steps to protect their ability to earn an income if that happens. It continues to be our and the industry’s job to ensure people are aware of the options open to them as part of their financial resilience planning.”
Main image: financial protection, house, sasun-bughdaryan-jkO_wMw4168-unsplash
