• Research
• 18 May 2023
• Joshua Toovey

• Almost half of freelancers (45%) are not currently saving into a pension
• One third (33%) of those planning to buy in the next five years do not understand the steps involved to get a mortgage
• 85 per cent of those on fixed-rate mortgages are concerned about the cost-of-living crisis when thinking about the end of their fixed-rate period, whilst 84 per cent were concerned with rising interest rates.

The self-employed, who we know were already far less likely to be saving for later life than employee counterparts, are facing a pensions crisis amid significant inflationary pressures.

Concerningly, almost half of freelancers (45%) are not currently saving into a pension, with 15 per cent indicating that they don’t even have a private or personal pension.

With the pandemic forcing over a quarter of self-employed people (27%) to burn through their savings to get by, whilst tax increases and cost-of-living pressures place a strain on freelancers’ ability to save, getting freelance finances back on track should be a national priority.

The research also found that self-employed homeowners on fixed-rate mortgages are particularly exposed to today's savings crisis, with the overwhelming majority now concerned about the impact of the cost-of-living crisis (85%) and rising interest rates (84%) when thinking about the end of their fixed-rate period.

Similarly, the research also revealed that greater support is needed for those planning to buy in the next five years, with one third (33%) of those planning to buy in the next five years not understanding the steps involved to get a mortgage.

Notably, over two-fifths of those planning to buy in the next five years (43%) worry that they may not be able to afford it, whilst 42 per cent worry that they will be treated unfairly by lenders.

In fact, other financial priorities (34%) were cited as the top reason for not being able to save, with other reasons including not being to afford it (24%) and ceasing contributions to a pension after moving across to self-employment (24%).

Concerningly, the process of obtaining a mortgage for those with savings appears to have become slightly more burdensome since the pandemic, with the percentage of freelancers required to provide additional paperwork because of their self-employed status (88%) slightly increasing compared to our findings from 2021 (81%).

You can read the full report here