What happens to your finances if you cannot work (and how to prepare)
Published 8 December 2025
Imagine waking up tomorrow and realising you cannot go to work. Maybe because of an illness, an injury, or even burnout. Suddenly your income stops, but your bills do not. For many women, this is a terrifying thought: “How would I cope? How would my family cope?”
The truth is, most of us do not think about it until we are forced to. But preparing in advance gives you more than financial security - it gives you peace of mind. You know that even if life takes an unexpected turn, your finances will not fall apart.
This article will walk you through what really happens to your money if you cannot work, and the steps you can take today to protect yourself. If you want personalised help to make sure you are fully prepared, you can book a call with Shalini Kanap, female financial adviser, who specialises in helping women build financial confidence and resilience.
What happens if you cannot work?
Loss of regular salary
Without income, the flow of money into your account stops almost immediately. For self-employed women, this can happen overnight. For employees, you may get Statutory Sick Pay (SSP) or a short period of employer sick pay.
SSP is only £118.75 per week (2025/26 tax year) for the first 28 weeks of being unable to work - barely enough to cover groceries, let alone rent or mortgage.
Some employers offer enhanced sick pay.
Benefits and state support
You might be eligible for Employment and Support Allowance or Universal Credit, but these are means-tested and do not replace a high salary.
Impact on savings and investments
Many women dip into emergency savings or investments. While this can help short term, it may derail retirement planning or long-term wealth goals.
See: How much do you really need to retire comfortably?
Knock-on effects
Mortgage or rent arrears if income loss is prolonged.
Debt accumulation (credit cards, loans).
Anxiety and stress, which make recovery harder.
Why women are more at risk
Women are more likely to work part-time or freelance, often without sick pay.
Career breaks for caring responsibilities mean smaller pensions and fewer savings cushions.
Women live longer, so long-term income disruption can have greater impact.
How to prepare: your action plan
Step 1: Build an emergency fund
Aim for at least 3-6 months of your outgoings as a rough guide. Keep this in easy-access savings. If you are self-employed and are the main income earner, you should consider keeping more accessible emergency funds.
Step 2: Understand your employer’s sick pay policy
Check your contract. Does your employer offer full pay for a period, or only SSP?
Step 3: Put protection in place
Income protection insurance covers illness or injury that stops you working.
Critical illness cover pays a lump sum for specific conditions.
Step 4: Diversify your income
Having more than one income stream means you are not fully dependent on your salary. Explore: Why high-earning women need a backup income plan.
Step 5: Keep investing for the future
Do not pause your pension or investment savings for too long if possible. Protecting the future matters as much as protecting the present.
Step 6: Reassess regularly
Life changes - children, divorce, career moves. Revisit your safety net annually.
Common mistakes to avoid
Assuming “it will not happen to me.”
Relying only on employer sick pay or state benefits.
Having insurance but not understanding exclusions.
Ignoring the emotional side of money stress.
An example: Emma’s story
Emma, 41, was earning £120,000 in a senior role when she was sadly diagnosed with a long-term health condition. Her employer provided only three months’ full pay. Without her income protection policy, she would have been forced to use her savings and sell investments she had worked hard to build. Not to mention, the money stress this would have caused at a time where she needed to focus on her health.
Instead, her policy replaced 60% of her salary until she was able to return part-time. At which point the policy topped up most of difference between her part time and full time salary.
This is the difference preparation makes: from financial crisis to financial stability.
The above example is for illustrative purposes only and does not reflect real companies or clients. Your numbers will differ. But it shows how you can break it down piece by piece. If you want to go through your numbers, book a call here.
Quick takeaways
If you cannot work, consider how you will pay your bills.
State support is limited and rarely enough.
Women are particularly vulnerable due to career breaks, part-time work, and longer lives.
Preparing means: an emergency fund, income protection, and diversified income streams.
Small steps today can prevent a crisis tomorrow.
Conclusion
Thinking about losing your income is uncomfortable, but planning for it is empowering. By putting the right protections and plans in place, you can turn a potential crisis into a manageable situation.
You deserve peace of mind, not sleepless nights. If you want to create a financial plan that makes you feel secure no matter what life throws at you, book a call with Shalini Kanap, female financial adviser, and take your first step towards confidence.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
Protection plans do not acquire a cash value. The cover provided will cease if premiums are stopped
Frequently Asked Questions
1. What happens if I cannot work and I am self-employed?
Your income stops immediately unless you have savings or protection. So you should consider income protection insurance.
2. How much is Statutory Sick Pay in the UK?
It is currently £118.75 per week (2025/26). For many women, this is far below their essential expenses.
3. What is the difference between income protection and critical illness cover?
Income protection pays a monthly income if illness or injury stops you working. Critical illness pays a one-off lump sum for specific conditions.
4. How much should my emergency fund be?
Aim for 3–6 months of essential costs. Some women, especially those that are self-employed or are the main earners, prefer more for extra peace of mind.
5. Do high earners really need income protection?
Yes - in fact, the higher your commitments, the bigger the impact if your salary stops.
SJP Approved 27/11/2025
