John Pollock, Group Board Director for Legal & Generalâ€™s Risk businesses, commenting in response to today's ONS announcement on unemployment figures said: .
13 March 2012
"The unemployment rate rose again, up 28,000 on the quarter. There were 2.67 million people unemployed in the three months to January 2012. Budgets continue to be squeezed as the economy remains uncertain and growth prospects are forecast to be slow. Many people and those out of work have seen the value of their savings eroded by inflation, as such their spending power is reduced and may be feeling vulnerable.
Legal & General’s MoneyMood Survey has revealed that the majority of people in the UK do not believe their savings or earnings will keep pace with inflation this year. Despite being aware that inflation will fall to be between 3% to 4% in 2012 our survey showed 8 out of 10 people (84%) say their earnings will not keep pace, and 9 out of 10 (92%) say their savings will not keep up with inflation either.
These figures highlight how important it is that people have some sort of financial cushion to fall back on should they become unemployed or ill. People should think carefully about how they can protect themselves if something should go wrong as many households would, it would appear from the research, struggle to cope."
Notes to editors
Research for the Legal & General MoneyMood Survey was carried out by TNS Omnibus.
Telephone interviews were conducted among a nationally representative sample (in GB) of around 1,000 adults (age 18+) between 13-15 January 2012, and 23-25 September 2011.
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