Life events and safety nets

Life events are extremely common; in a given year, around a quarter of people experience a life event such as an income shock, illness or accident within the
family, relationship breakdown or a bereavement. Experiencing multiple events in a relatively short period of time is also unexceptional: over a threeyear period, around a third of people experience more than one of these types of events. These events often come with a financial detriment; among National Debtline clients in 2024/25, an unexpected life event was the number one reason for people’s financial difficulty.

Planning financially for the impact of these events is therefore vital. Focussing on adults aged 25-55, this study provides new insights into life events, financial resilience and financial preparedness, to understand how to prevent people falling into problem debt after experiencing such an event. The study took a five-stage approach:

1. Rapid evidence review
2. Qualitative interviews
3. Analysis of the Financial Conduct Authority's Financial Lives Survey
4. Commissioned YouGov survey
5. Policy recommendation development