Commenting on the number of self-employed people reaching 5 million for the first time, according to the ONS, Becky O’Connor, personal finance specialist at Royal London:
“Self-employment is a bold move. Being your own boss can work well, but it can also be tough, with challenges like chasing payments and insecurity of income.
"Self-employed people can be more vulnerable to financial shocks. It can be harder to budget or plan a big purchase, such as a house, when you are self-employed.
“It can also be harder to save enough for retirement without employer contributions to a workplace pension, and this is an area where many self-employed people are vulnerable.
“So many areas of public policy are based around the assumption that people have an employer and a steady income and need to be re-thought in a country where millions of people work for themselves.”
About Royal London:
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £138.9 billion, 8.6 million policies in force and 4,126 employees. Figures quoted are as at 31 December 2019.