Self-employed people are more at risk financially

Ryan Bembridge

September 4, 2017

Many of the UK’s self-employed population aren’t saving money and don’t know they are eligible for income protection, LV= research shows.

Two in five (41%) can’t afford to save any money a month and a similar proportion (42%) wrongly think they aren’t eligible for income protection.

Justin Harper, head of protection policy at LV=, said: “The labour market has changed markedly in recent years, with self-employment continuing to rise.

“The government’s Taylor Review sought to address the challenges of the modern workplace and ensure all workers are aware of their rights, but it’s often the case that self-employed people and small business owners lack the safety net of an employer’s benefits, such as sick pay.

“This means they risk having to rely instead on state benefits which can involve a lengthy application and wait, with no guarantee of any support.

“Government and industry have a duty to improve the financial resilience of the self-employed.

“We believe that an income protection policy can play an important part in increasing resilience and is one of the best ways for the self-employed to protect themselves against a financial crisis.

“By having a conversation about protection with clients, advisers can ensure more people in the UK are equipped to tackle financial blows.”

Monthly bills take up the wages of nearly two thirds (62%) of self-employed people compared to a national average of 56%.

Meanwhile self-employed people don’t have access to employers’ benefits, such as sick pay.

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