Our latest research into the financial resilience of the self-employed has found that 62% are not worried about a loss of income due to illness or injury.
The rising cost of living, the impact of the UK leaving the EU and the size of retirement incomes were all noted as greater concerns.
A short-term drop in income due to illness may be manageable for some, but it’s not the case for everyone, particularly those with no financial safety net to fall back on.
Our research also found that:
- 52% would rely on savings to make up a temporary drop in income despite half saving less than £100 per month
- One in five would rely on government benefits
- 13% would use their pension savings or take early retirement.
This creates a picture of immediate uncertainty for the self-employed, who don’t benefit from employer sick pay arrangements. And what about the 34% of respondents who are worried about the impact of ill-health on their incomes? Only 9% of the self-employed workers we surveyed have purchased income protection, meaning many of them remain ill-prepared.
To find out more about “Ill Prepared 2020 – the self-employed financial resilience report” and to get your copy, book a short webinar with one of our Adviser Account Managers.
