More are increasingly taking out protection cover
The number of blended families in the UK is rising, yet half of them do not feel secure and are less likely to have savings, according to new research from Legal & General.
The study has revealed that blended families face unique financial challenges as they try to balance complex arrangements and incomes that are sometimes stretched across multiple households.
As there are now 2.2 million blended family households across the country, more are increasingly taking out protection insurance, with parents in these families around 26% more likely to take out protection insurance after remarriage and 56% more likely to do so when becoming a stepparent.
Still, parents in these families are 35% less likely to have a rainy-day fund and 61% less likely to regularly save or invest. One in five parents of blended families said the end of their previous relationship directly impacted their savings. As a result, 45% of blended families are concerned about their financial future.
“Creating a new family structure is often a wonderful, happy time but can also bring challenges,” said Paula Llewellyn (pictured), chief marketing officer and direct managing director at Legal & General Retail. “Families are often trying to find a new way that works for them, and how you manage your money is just one part of that.
“Our research shows that while the parents of blended families might face some financial struggles, they are also more likely to have protection in place. Protection insurance, which provides a safety-net when the worst happens, seems to be more front-of-mind for these families perhaps because people are more aware of the impact that a significant change in circumstances can have. For parents looking to get to grips with the changes in their finances, Legal & General has resources available.
“It’s important that our industry understand and embrace the changing needs of families, making sure that appropriate products and services are available. The route to family building isn’t ‘one size fits all’, and we need to adapt and ensure products are flexible, and customers understand their options. No matter their family set up, people should feel empowered and informed when it comes to managing their money.”
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