Many contractors are not thinking about their future finances

(2 minutes to read)

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With findings showing the self-employed are currently mostly financially secure and happy, many are concerned about the future.

A recent IPSE report ‘The Path to Prosperity’, revealed that although 72% of contractors are content with life because of the way that they manage their money, as many as 77% are worried that the finances they have – or are going to save – will not last.

Over half (51%) have felt anxious or stressed about their financial situation and this is exacerbated by the lack of tailored money management advice and flexible savings products available for the self-employed.

Interestingly, Generation X and Baby Boomers are more likely to prioritise saving for retirement compared to millennials who seem to focus more on the financial near future.

Suneeta Johal, IPSE Head of Research, Education and Training, said, What you have at the moment is a situation where the self-employed are almost the YOLO workers of the modern economy: secure and happy for today, but worried about tomorrow. So, while this report confirms that being your own boss can be extremely rewarding, it also raises concerns.

“Because of irregular work patterns, late payments and a lack of tailored products, self-employment can pose financial challenges and leave people concerned for the future. The crucial recommendations in this report can alleviate that and help the self-employed take control of their financial wellbeing.”

Iona Bain, founder of the Young Money Blog and IPSE’s 2018 Freelancer of the Year, added, “We must give millennials more empowering choice about how they manage their long-term finances, rather than keep them tethered to old-fashioned products and attitudes.

“Self-employed people often have different financial goals and strategies to employees – all of which are misunderstood by policymakers. This research shows just how much we value our freedom, and why measures to ensure that freedom is protected are vital.”

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