Britons believe they could last 10 months if faced with the prospect of not working.
The reality is they could survive just five months.
43% of Britons think they could use their savings to pay the bills following a redundancy.
The reality is 38% of the UK's working population could not survive beyond one month on savings alone.
Britons believe their average outgoings to be £892 per month.
The reality is they're spending £486 more than this at £1378 per month.
Brits are grossly underestimating their monthly essential spend by as much as £964, whilst at the same time overestimating how long they could survive on their assets, if they were to lose their monthly income, by a staggering five months according to The Reality Gap Report commissioned by insurer Bright Grey explores people's perceptions of their monthly outgoings against independent research into what people are actually spending and have in personal assets.
The average Brit thinks they spend less than £900 a month on bills, but in reality they fork out nearly £1400, this is a difference of as much as £734 for child free couples and a whopping £964 per month for families
Roger Edwards at Bright Grey comments: "It is clear that Brits are ill informed when it comes to their finances. Not only are they grossly overestimating how long they could survive if they lost their income stream, but even more worrying is that they have no real concept of what they are spending each month, making it very difficult to budget and plan effectively.”
Income protection insurance: News update: 1 December 2009