Over two-thirds of 18-34 year olds are worried they would be unable to maintain their standard of living should they lose their job, yet most are 'unware' of protection insurance.
Bright Grey's annual Financial Safety Net report found stress at the thought of surviving without a salary is felt by 50% of UK adults, but particularly pronounced in those aged 18-34 (67%), dubbed ‘Generation Recession'.
However, this is 5% lower than this time last year (72% of 18-34 year olds in 2012) which could be an indicator that young people feel more prepared financially. Despite such trends, few have any kind of protection in place.
Jennifer Gilchrist, senior product development manager at Bright Grey said it was "no surprise" that younger people were the most concerned, as without the security of an established career or savings, this group has the most to lose if they were to find themselves out of work.
She added: "It is interesting that this age group has also lived in a financially uncertain climate for most if not all of their career. While it is encouraging to see growing confidence after the doom and gloom of recession it is clear many do not know that protection insurance is a way for them to maintain their peace of mind if unable to work."
The survey found the average person is now estimating they could continue to support themselves for just over ten months.
Households are also starting to think about their futures with the amount of people without savings falling by 1.7 million, with the average person polled having £9,883 in savings tucked away for a rainy day.
Gilchrist, added: "It is always encouraging to see people planning from a financial perspective, particularly as these figures indicate renewed confidence in individuals' abilities to control their own finances.
"However, it is important that we do not encourage complacency. Our report indicates that 60% of people do not currently have any kind of protection insurance and with the average monthly household expenditure currently estimated to be over £2,000 a month, people's hard-earned savings may not tide them over for as long as they hope.
"Now is the time to strengthen your financial safety net and ensure that finance is not your concern should you or a loved one be diagnosed with a serious illness, suffer a disability or die."
