Alan Kennedy
2024-06-19 12:02:09
www.visualcapitalist.com
How Long Can People Cover Their Needs Without Income?
With nearly half of people under 34 worldwide unable to cover their needs for a month or less without income, it is no surprise that financial resiliency is a hot topic.
So, for this graphic, Visual Capitalist has partnered with Lloyd’s Register Foundation to explore economic resilience further and determine how long the average person can afford to cover their needs without income.
World Risk Poll 2024 Report: Economic Resilience
Lloyd’s Register Foundation produces the World Risk Poll every two years in partnership with Gallup, and the World Risk Poll 2024 report explores the everyday risks of 147,000 people from 142 nations.
They asked respondents how long they could afford to cover basic needs, such as food, transport, and shelter, if they lost all income.
Here’s what they found:
| Age Group | Less than a month | Around a month | Two months | Three months | Four months or more |
|---|---|---|---|---|---|
| 15 to 24 | 40% | 10% | 12% | 10% | 20% |
| 25 to 34 | 39% | 9% | 13% | 10% | 24% |
| 35 to 49 | 38% | 9% | 13% | 10% | 25% |
| 50 to 64 | 32% | 8% | 16% | 11% | 29% |
| 65+ | 28% | 9% | 12% | 10% | 33% |
The results reveal a distinct trend across all age groups, with respondents typically falling into two categories: those with one month or less of financial runway, and those with more than four months. Relatively fewer respondents reported being able to survive two to three months.
National Economic Resilience
The nation where a person lives also significantly contributes to their ability to cover their basic needs.
The divide is particularly sharp between the percentage of respondents who could only cover their needs for a week or less and those who could cover their needs for a month or more—a tiny minority in developed economies, but a significant share of respondents from some developing nations.
Engineering a Safer World
The World Risk Poll 2024 report has revealed a weakness in global economic resilience. Younger individuals and those in developing countries are at higher risk than older individuals or those in developed countries.
The report shines a light on the risks ordinary people face, such as how long they can cover their needs without income. However, the World Risk Poll 2024 report also highlights many more risks, such as global plastic waste, people’s safety at work, and the threat of climate change.
Get more data-driven insights from the new World Risk Poll 2024 report
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