The 7-Year Shock: Most Workers Would Face Financial Pressure Within Three Months of Being Unable to Work
New report by economist Jim Power, commissioned by Aviva Life & Pensions Ireland (Aviva), highlights the potential financial impact of being unable to work for an extended period
Separate Aviva research among 1,000 workers found more than half would face financial pressure within three months if their income stopped
Key findings:
- More than half (55%) of workers would experience financial pressure immediately or within three months if their income stopped
- 89% would be worried about their finances if unable to work for more than six months due to illness or injury
- 72% have less than four months of essential living expenses saved
- 60% would not feel financially prepared once employer sick pay or income support ends
- 64% do not have income protection insurance
Workers in Ireland could lose hundreds of thousands of euros in earnings if illness or injury prevents them from working for an extended period, according to a new report by economist Jim Power, commissioned by Aviva Life & Pensions Ireland (Aviva).
The report, ‘The 7-Year Shock’, examines the potential financial consequences of being unable to work due to illness or injury for the average duration of an Aviva income protection claim, which was 7.8 years in 2025*.
Drawing on Aviva claims experience, together with economic, savings and income data, the report explores the gap that can emerge between lost earnings and the financial supports available to workers who are unable to work for an extended period.
The findings come at a time when many workers appear unprepared for a prolonged loss of income. Separate research commissioned by Aviva among 1,000 workers nationwide** examined how prepared people are financially if they become unable to work, including how long they could cope without an income and the impact a prolonged absence from work could have on their household finances. The research found that more than half (55%) would experience financial pressure immediately or within three months if they were unable to work due to illness or injury.
Long-term illness can create a lasting financial shock
‘The 7-Year Shock’ examines how a prolonged absence from work can affect a person's finances over time. Using a series of illustrative case studies across different professions and income levels, the report highlights the potential gap between lost earnings and the financial supports available to people who are unable to work due to illness or injury.
The analysis shows how financial pressure can build as employer sick pay ends, with State supports replacing only part of previous earnings and savings gradually depleted. Over time, this can make it more difficult to cover everyday expenses, continue pension contributions and achieve longer-term financial goals.
Preparedness gap
Despite concerns about the financial impact of long-term illness, many workers acknowledge they are not financially prepared for a prolonged absence from work.
Six in ten (60%) said they would not feel financially prepared once employer sick pay or income support ends, while almost two-thirds (64%) do not currently have income protection insurance.
Taken together, the report and research findings suggest there is a significant gap between people's reliance on their income and their ability to replace it if illness or injury prevents them from working.
Most people rely on their income to pay for everyday expenses such as mortgage or rent, household bills and childcare. This report highlights that the financial impact of illness or injury can be much greater and last much longer than many people expect. Our research shows that many workers would come under financial pressure within months if their income stopped, while most do not feel financially prepared for a prolonged absence from work. Income protection insurance can provide a replacement income if someone is unable to work due to illness or injury, helping them meet essential expenses while they recover. Aviva customers can also access Aviva Care services at no extra cost, providing additional health and wellbeing support
Siocha Costello, Senior Protection Marketing Manager at Aviva Life & Pensions Ireland, commenting on the findings
Jim Power, Economist and author of ‘The 7-Year Shock’ added: "This report highlights a significant gap between how long many people believe they could cope without an income and the reality of a prolonged absence from work. Maintaining a certain standard of living is important for most people, but the reality is that loss of income due to illness renders that impossible for many, and their whole quality of life and life choices can deteriorate very quickly.
The evidence suggests that a loss of earnings can create a lasting financial shock, affecting not only day-to-day finances but also longer-term goals such as saving for retirement and building financial security’’.
How income protection can help
Income protection insurance can provide a regular income if illness or injury prevents you from working. It can help cover everyday expenses such as mortgage or rent payments, household bills and other essential living costs while you focus on your recovery.
Aviva Care
Aviva individual and group protection customers can access Aviva Care at no extra cost. The service includes Best Doctors® Second Medical Opinion, which gives customers access to a global network of leading medical specialists who can review a diagnosis and treatment plan, helping them make informed decisions about their care.
Aviva Care also includes access to a Digital GP service, mental health and bereavement support, and other wellbeing services designed to support customers and their families.
For more information on Aviva Care and to read ‘The 7-Year Shock’, visit here.
ENDS
*refers to Aviva Life & Pensions Ireland's 2025 Income Protection Claims Key Trends and Insights, as summarised here.
**refers to research of 1,000 workers in Ireland conducted by 3Gem Research & Insights on behalf of Aviva Life & Pensions Ireland, 2026