Renters are leaving themselves financially vulnerable by not having adequate savings, according to the findings from Aviva’s Family Finances Report.
This report has revealed that 25% of private renting families do not have any savings or investments, leaving them vulnerable to unexpected expenses. More than one in five families do not even possess a savings account.
It’s a different story for homeowners, as 95% of those who own their home outright have a savings account.
This report also stated that families who rent are also less likely to have insurance cover. Only 20% of those renting have cover, compared with 48% who own their home with a mortgage.
These findings are particularly crucial as the number of families with dependent children living in rented accommodation has also risen. In 2013, 17% of couples with dependent children were private renters, however in the last two years this figure has risen to 23%.
“Renters might not have a mortgage to pay, but they still have financial obligations like bills and monthly rent. Not having a savings cushion in place means unexpected costs could make day-to-day living a struggle, while a lack of income protection could be disastrous should they become ill and unable to work,” says Louise Colley, Managing Director Protection at Aviva.
“With growing numbers of parents in rented accommodation, it’s vital all families think about the future and put financial plans in place, regardless of whether they are a homeowner or not,” she adds.