41% of self-employed people struggle to save any money each month, leaving them exposed to financial problems.
Leading insurer LV= polled 9,495 self-employed workers and found only 11% save less than £50 a month.
In addition, 1 in 3 respondents said they could not survive for more than 3 months if they lost their income.
62% of sole traders said monthly bills prevent them from saving cash each month, compared to the national average of 56%.
Furthermore, 33% feared being hit by unexpected costs, such as home maintenance and repairs, compared to the national average of 28%.
Most worryingly, just 4% of those polled have income protection while 42% mistakenly believe they are ineligible for it.
The findings on income protection are particularly alarming when:
- 28% are worried about not being able to work due to an accident
- 29% are worried about becoming unwell.
Justin Harper, head of protection policy at LV=, said:
“It’s often the case that self-employed people 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.
“Self-employed people should speak to a professional about whether they’d benefit from taking out private insurance, such as an income protection policy, that will pay out if they couldn’t work because of accident, sickness or disability.”