A new survey has revealed that, despite widespread financial issues, 81 per cent of self-employed workers in the UK are not seeking financial advice. The findings came in a survey by Scottish Widows, which highlighted the fragile financial situation that many freelancers are currently faced with.
57 per cent of freelancers polled in the study revealed that, if they aren’t working, they are forced to rely on their personal savings. 24 per cent claimed that, in the event they were unable to work, their money would only stretch to cover three months of living expenses, as freelancers grapple with the UK’s growing cost of living.
Just 23 per cent reported receiving a monthly income, 49 per cent said that being self-employed, a consultant or a contractor meant their income varied, while 48 per cent said that unpredictable income was a result of owning their own business.
However, despite these worries, the vast majority of those polled said they were not seeking any professional financial advice. The main reasons for this were thinking that they wouldn’t be able to afford it (31 per cent) and never having considered it (24 per cent).
13 per cent of respondents also had no critical illness or life insurance cover, with 31 per cent of that number saying it wasn’t a priority for them. Other reasons for not having cover were not being able to afford policies (24 per cent), feeling like they didn’t need them (27 per cent) and willingness to risk not having insurance (25 per cent).
Rose St Louis, Protection Director at Scottish Widows, said: “The self-employed don’t have the luxury of having an employer to rely on for sickness cover or health insurance, making them vulnerable to loss of income or unexpected financial shocks.”
“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.”
