Majority of self-employed concerned about saving for later life

As many as 71% of contractors are worried about saving for later life following the financial difficulties that came with the pandemic.

The IPSE/CMME research found that women are most likely to be affected, with 78% of female self-employed professionals admitting they’re concerned about saving for later life compared to 69% of men.

The findings also show that many contractors are anxious when it comes to how they’ll be handled by mortgage lenders – 50% believe that they won’t be treated fairly because of being self-employed.

According to the survey, 38% that have obtained a mortgage this year said that the process was either somewhat or very difficult. This represents a 57% increase since 2020.

Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed), commented, “Today findings are a wake-up call for lenders and the government. While the focus in recent months has been on economic challenges like supply chains and rising inflation, more attention needs to be given to self-employed workers, who have taken the brunt of the pandemic.

“The government needs to work alongside the financial sector to alleviate the barriers preventing more freelancers from accessing financial products. Around 1 in 7 working people in the UK are self-employed. Not only do we have a responsibility to ensure they have the same ability to save and buy a home as everyone else, lenders should recognise the self-employed make up a huge and potentially lucrative market.”

Mike Coshott, CEO at CMME, added, “As we come out of the pandemic, it is clear that self-employed workers need more financial support. The past year and a half has derailed freelance work, with many self-employed people seeking help from SEISS and other financial schemes. While many have been able to generate regular work and income post lockdown, today finding’s around savings show that freelancers still bear financial scars from the pandemic.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.