Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    Money Advice Service
    If you were to lose your job tomorrow, how long would your savings last you?
    • #1
    • 9th Nov 18, 12:38 PM
    If you were to lose your job tomorrow, how long would your savings last you? 9th Nov 18 at 12:38 PM
    Does it worry you?

    #TalkMoney

    This thread is part of a Hub post aimed at helping people new to personal finance start a conversation on it. It’s aimed at newbies, so please be patient with anyone posting on here.

    We’re verified representatives of the Money Advice Service, working with MoneySavingExpert on a Hub and series of posts as part of Talk Money Week to encourage people new to personal finance to discuss money. If you have any questions please ask below or get in touch with a member of the Forum Team.

    We'd love it if you got involved with our other #TalkMoney week conversations we've started. Check out our hub with all the links - https://forums.moneysavingexpert.com/showthread.php?t=5921799
    Last edited by Money Advice Service; 12-11-2018 at 3:00 PM. Reason: More info
    Verified Company
    I am a verified representative of Money Advice Service. MSE has given permission for me to post in response to queries about the company so that I can help solve issues. You can see my name on the Verified Companies list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
Page 2
    • pinknsparkly
    • By pinknsparkly 9th Nov 18, 6:01 PM
    • 119 Posts
    • 294 Thanks
    pinknsparkly
    Forever! I'm paranoid about this, and have built a life for myself and my husband that means we can live (comfortably but without any excess or fancy hols) on just one of our salaries. So if I lost my job, we would be able to live on his salary without touching our savings until I found another one.


    If, on the other hand, you're asking how long our savings would cover our outgoings - currently 2 years. In a matter of weeks (we're buying a house), that will be down to about 1 month. But rebuilding that back up to a 6 month pot will be my first priority after the house purchase goes through. However, I am not worried because, as I said above, it would require BOTH of us to lose our jobs at the same time for us to need to use those savings. And if we were struggling to find work, both of us would take whatever work was available in that situation.
    Plan: buy a house in summer 2018 | spring 2019 | winter 2018

    Realistic savings goal: 10% house deposit. DONE
    Super ambitious savings goal: 15% house deposit. DONE
    Currently on 13.2% (2nd Apr '18) | 14.1% (2nd Jul '18) | 15.6% (31st Jul '18) | 16.9% (1st Sep '18) | 18.0% (6th Oct '18) | 18.4% (31st Oct '18) 23.9% (2nd Nov '18)
    • londoninvestor
    • By londoninvestor 9th Nov 18, 6:19 PM
    • 415 Posts
    • 339 Thanks
    londoninvestor
    Most forumites on here seem very knowledgeable about personal finance, and I imagine many have accumulated savings / investments / pensions over the decades. The quality of debate on here is high, suggesting to me that forumites are well educated, and therefore may be likely to have (or had) better than average salaries (thus enabling them to make provision for future years)
    Originally posted by Alice Holt
    I think all that is true... and yet there is existing content on this board which would be really useful to link to. It happens pretty regularly that someone posts asking about starting out with savings, and gets good suggestions on the role of an emergency fund and how to build it up.
    • Mnd
    • By Mnd 9th Nov 18, 7:59 PM
    • 789 Posts
    • 970 Thanks
    Mnd
    I've retired and I'm 64
    I have works pension 7200 and I will get a higher than full state pension.

    My wife still works (58) and if she lost her job now we would be able to get through to her state pension, but not as comfortable as now.

    15 months time when I get my statext pension we will be fine.

    No housing costs
    • Alexland
    • By Alexland 9th Nov 18, 8:03 PM
    • 3,593 Posts
    • 2,911 Thanks
    Alexland
    I wouldn't need to draw upon my savings as I would be happy for my wife to keep me. Perfect excuse.
    • Mnd
    • By Mnd 9th Nov 18, 8:35 PM
    • 789 Posts
    • 970 Thanks
    Mnd
    I wouldn't need to draw upon my savings as I would be happy for my wife to keep me. Perfect excuse.
    Originally posted by Alexland
    That's what I'm doing, I throughly recommend it
    • Snow Dog
    • By Snow Dog 9th Nov 18, 10:52 PM
    • 582 Posts
    • 291 Thanks
    Snow Dog
    Bit of a vague question I think. But will join in the fun. 2.5 years at no significant reduction in expenditure.


    Figure that will skew the results a teeny bit given the average household in the country probably runs at less than 6 months.


    Reading the rest of the answers on the thread MSEers are truly FinSavvy.
    • Apodemus
    • By Apodemus 10th Nov 18, 7:03 AM
    • 1,134 Posts
    • 939 Thanks
    Apodemus
    This is a disappointingly vague question from an organisation that should have a better understanding of the complexity of individual finances and life-choices, but I’ll bite!

    Assuming no redundancy payments, no other external support and wife also loses job on same day and under same assumptions...

    I could spend at current levels for 3.5 years.

    However, I would be more likely to retreat to core expenditure, at which I could maintain an acceptable, but frugal, life-style for 7.5 years.

    A statutory redundancy payment would add probably 7 months to the first scenario or 15 months to the second.

    EDIT: Just to make it clear, that the above periods are not due to any great wealth, but rather because of a preference for simple pleasures and a careful approach to finances!
    Last edited by Apodemus; 10-11-2018 at 7:15 AM.
    • masonic
    • By masonic 10th Nov 18, 7:34 AM
    • 10,099 Posts
    • 7,383 Thanks
    masonic
    At current levels, I could live off:

    cash reserves: about 2 years
    low risk investments: about 4 years
    higher risk investments: about 20 years
    At that point I could start taking income from my pension and then my Lifetime ISA and retire, but it would not be an ideal outcome as I'd have depleted a lot of the money I'd want to supplement my state pension.
    • Lomcevak
    • By Lomcevak 10th Nov 18, 8:14 AM
    • 743 Posts
    • 4,362 Thanks
    Lomcevak
    Unless we're constructing doomsday scenarios, forever:


    - We save more than 50% of joint income, so could live at current expenditure without any problems

    - I put a lot of effort into ensuring i'm employable, so I have very few concerns about finding another job. I (intentionally) work in areas where the demand for critical skills outstrips supply, have a good network of contacts, and put a lot of effort into keeping my skills current, so if I lost my job then I've done as much as I can to be able to pick up the phone and find something else.

    In the doomsday scenario where Mrs L. gets fired on the same day and there are no jobs anywhere to be seen...

    Cash would carry us through about 6 months at current spend rates, maybe twice that if we cut back expenditure hard. Then spending down the S&S ISAs would run another three years or so, assuming that shares hadn't collapsed in the zero-employment apocalypse. If neither of us found work in those four years then we'd have to downsize the house to carry us through to pension age, at which point we'd be frugal but comfortable.



    TL;DR - i've got 99 problems, but this ain't one...
    MFiT-T4#126, £135k to 60k: £70,651/£75,000 (94.22%), 2018 MFW#11 £14,607.55/£15,000 (97.38%)
    £30k-in-’18#11 £42,830.91/£30,000 (142.77%)
    • Tarambor
    • By Tarambor 10th Nov 18, 9:37 AM
    • 3,775 Posts
    • 2,811 Thanks
    Tarambor
    Assuming absolutely no income whatsoever from anywhere, 18 months without altering my lifestyle at all.

    Assuming entitlement to benefits would extend that considerably. There would be a period where I'd not qualify for income based benefits until my savings dropped sufficiently but then topping up state benefits and taking into account lower costs for things like dental care, prescriptions, no longer commuting 17,000 miles a year to work then they'd probably do a decade.

    Fortunately though being a truck driver with over two decades experience I'm lucky enough to be in a position where I could leave a job on Friday, pick up the phone and be employed somewhere else on Monday such is the demand so the only reason for me not to have a job is ill health. As for self driving trucks, self driving vehicles are something I have an interest in and going on the state of some of the tech needed which is already fitted to the truck I drive,, which only this Thursday turned itself off because there had been a downpour with a lot of surface water and the spray preventing the sensors from working, it isn't going to be ready for use in this country until after I reach retirement.
    Last edited by Tarambor; 10-11-2018 at 9:41 AM.
    • Wizard of Id
    • By Wizard of Id 10th Nov 18, 9:38 AM
    • 4,977 Posts
    • 16,967 Thanks
    Wizard of Id
    The rest of my life.
    Every man is innocent until proven broke.
    Cryin won't help you, prayin won't do you no good.

    Keep Moving in 2018 Challenge - Target 3333 miles
    This week - 75.1
    Total so far - 3486.4
    • PuzzledDave
    • By PuzzledDave 10th Nov 18, 9:44 AM
    • 157 Posts
    • 735 Thanks
    PuzzledDave
    Depends.

    Savings alone: 2 1/2 years

    Savings + guaranteed income (e.g. child benefit, bank interest): 5-6 years.


    Increase both of these by 50% if you would include some cutbacks such as no longer paying into private pensions/charity donations e.t.c.
    • Alice Holt
    • By Alice Holt 10th Nov 18, 11:02 AM
    • 2,540 Posts
    • 2,937 Thanks
    Alice Holt
    ... but then topping up state benefits and taking into account lower costs for things like dental care, prescriptions, no longer commuting 17,000 miles a year to work then they'd probably do a decade......
    Originally posted by Tarambor
    I'm afraid that many people will be surprised by just how limited state benefits can be.
    Job seekers allowance (and Universal Credit) is £73 a week - and contribution-based JSA is limited to 6 months - a total of £1,900.
    After that the household is subject to means-testing and if the partner is working more than 24hrs a week, no further payments are payable.
    Help with mortgage interest is deferred for 39 weeks, and now is a loan chargeable on the property to be repaid on sale.
    For those having to exit the labour market due to ill-health, the outlook on current benefits is very bleak. If found unfit for work (here is the assessment - https://www.benefitsandwork.co.uk/employment-and-support-allowance/start-the-esa-test ) the claimant will receive a contribution-based payment of £73 a week for one year.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
    • timmy963
    • By timmy963 10th Nov 18, 11:10 AM
    • 70 Posts
    • 57 Thanks
    timmy963
    A calculator I found said 20 years for me, assuming saving rates keep with inflation.
    • Bravepants
    • By Bravepants 10th Nov 18, 11:27 AM
    • 496 Posts
    • 596 Thanks
    Bravepants
    I will be 51 in May next year. If I lost my job with redundancy because of Brexit that will be me done with the world of full time work. I will burn down ISA, then move to SIPP and actuarially reduced pension from 55. I would be more comfortable if I lost it a year later, assuming it will take 12 months for my organisation to realise the full impact of Brexit. I feel I've got to plan for uncertainty.
    • amistupid
    • By amistupid 10th Nov 18, 12:20 PM
    • 52,544 Posts
    • 167,219 Thanks
    amistupid
    Around 630,726,057.14 seconds (to the nearest hundredth of a second).
    Originally posted by karlie88
    205,532,891.27 seconds if it's no deal.
    In memory of Chris Hyde #867
    • MisterMotivated
    • By MisterMotivated 10th Nov 18, 1:36 PM
    • 195 Posts
    • 173 Thanks
    MisterMotivated
    Assuming absolutely all my income stopped, then about 2 years at current spending level, though like others have said, I'd probably cut back to 'core' spending, giving me about 4 years. If income generating investments continued, then I should be able to survive indefinitely.
    • sevenhills
    • By sevenhills 10th Nov 18, 4:24 PM
    • 1,727 Posts
    • 628 Thanks
    sevenhills
    My savings certainly add up to less than my 12 months salary, I have very little cash.
    Actual cash, less than £2k, shares £2k

    I have £6k available in a pension pot and around £70k in equity in my house.

    • TBC15
    • By TBC15 10th Nov 18, 4:33 PM
    • 623 Posts
    • 314 Thanks
    TBC15
    So when will the wisdom of the OP be revealed?
    • Glen Clark
    • By Glen Clark 10th Nov 18, 6:22 PM
    • 4,273 Posts
    • 3,290 Thanks
    Glen Clark
    As for the question raised by the topic: forever, because I would get another job before they ran out.
    Originally posted by Malthusian
    Lucky you - but that would not be your savings lasting you forever.
    Which was the question asked.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

136Posts Today

1,574Users online

Martin's Twitter
  • I've just heard about the 8 month pregnant woman shot through the stomach by a crossbow. Its both evil and medie? https://t.co/hQTOxWiXhj

  • Major new guide... Brexit, what it means for you and your finances: M mortgages, savings, flights, consumer rights? https://t.co/SXCMG2qXwX

  • Have you haggled on the high street in the last year? If so who with and did you succeed? Please vote in this week? https://t.co/fdzmmFfA4u

  • Follow Martin