Independent Financial Advisors (IFA) suggested that more and more of their clients are turning to emergency savings, credit cards and loans according to a recent survey.
The Scottish Provident's Financial Safety Net asked a number of IFAs what they think their clients, with no protection in place, would do if they became unemployed or contracted a critical illness.
Other IFAs suggested clients would rely on benefits from the state, while some suggested that people would probably have to seek help from friends and family.
A further 47% suggested their clients would cancel luxury items, such as gym memberships, and 42% of those IFAs surveyed said people would have everyday savings that could help fund their living costs.
Reasons to dip into savings
In addition to this data, a survey from Legal & General showed recently that British people withdraw from their savings for very different reasons.
Of those Brits paying off a mortgage, 57% of them take money from their savings account to cover increased mortgage payments, 13% do it to pay for a holiday and 11% would only withdraw money to pay household bills (including food and utilities).
Paying household bills, however, is the main concern for people without the worries of a mortgage. 45% of those surveyed would use savings to pay bills, 12% would use their savings to pay for educational costs and 11% of people would only withdraw money to pay for a holiday.
Despite describing in detail their clients' reactions, IFAs warned that protection should always be a priority, even in tough economic times.