Self-employment and young people - Royal London comments

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Becky O'Connor

Personal Finance Specialist

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In response to an Office for National Statistics publication “Young People and Self Employment”, published this morning, which finds an expectation of “high pay and leisure time” and a gap between this expectation and reality, Becky O’Connor, personal finance specialist at Royal London, said:

“It might seem like the best of all worlds, but the reality is self-employment is not for the faint-hearted. It can involve periods of no pay, time spent chasing payments and the loss of valuable employee benefits typically offered by companies, such as holiday, a workplace pension, sick pay and enhanced parental pay if you have a baby.

 

Those considering self-employment need to think carefully about what they might be giving up and have a target income level that reflects the loss of benefits, as well as a big cash buffer that can tide you through the tough times.”

Notes to Editors

 

  • There were more than 500,000 self-employed 22- to 30-year-olds across the UK in 2018, a third more than there were in 2008.
  • The ONS found that many 16- to 21-year-olds associate self-employment with a high income, but “the reality is that self-employed workers earn around £3,800 less per year, on average, than employees. This is despite many of them working longer hours.”

For further information please contact:

Becky O’Connor, Personal Finance Specialist

About Royal London

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £130 billion, 8.8 million policies in force and 4,046 employees. Figures quoted are as at June 2019.

At Royal London, we’re proud to champion the value of impartial advice. We believe it plays a crucial role in connecting people with the products that are right for them – and is key to delivering better outcomes and experiences for our customers. At the same time, it helps to build trust in our products and services.

Royal London works alongside advisers not in competition with them. That’s why we’ve made some key commitments to the intermediary market. You’ll find more detail on our commitment to advisers at http://adviser.royallondon.com/campaigns/our-commitments/