A new survey from pensions provider Scottish Widows has highlighted the financial worries facing freelancers in the UK. According to its findings, 57 per cent of UK freelancers use their personal savings if they aren’t in work, 64 per cent say they don’t receive regular income and just 23 per cent are paid monthly.
24 per cent of freelancers polled in the survey, meanwhile, said that their money would only be sufficient for three months’ worth of living expenses if they were unable to work for some reason, with the UK’s cost of living escalating rapidly.
49 per cent cited the fact that they were self-employed, a consultant or a contractor as the main reason for having an unpredictable stream of income, while 48 per cent said that this was due to them owning their own business.
In spite of this, the survey also found that an overwhelming 81 per cent of freelancers polled had not sought any form of professional financial advice. 31 per cent of that number said they couldn’t afford financial advice and a further 24 per cent admitted that they had not considered seeking it.
Finally, the survey also found that, although many freelancers had sought to secure financial cover for their families or themselves, 13 per cent did not have any form of critical illness or life insurance. 31 per cent of freelancers without cover didn’t consider it a priority and 24 per cent said they couldn’t afford it. A further 27 per cent felt they didn’t need cover and 25 per cent said going without was a risk they considered worth taking.
Discussing the survey’s results, Scottish Widows’ Protection Director Rose St Louis said, as self-employed workers cannot rely on employers for insurance or sickness cover, this makes them especially “vulnerable to loss of income or unexpected financial shocks.”
St Louis added: “Advisers have an important role in opening up conversations with clients to ensure that all aspects of protection are discussed, and that the right policies are in place to help create financial peace of mind.”
Author: Steven English