Self-employed twice as likely to shoulder the cost of rent deposits for dependants than their employed counterparts
When it comes to prioritising financial goals over the short, medium, and long term, in the majority of cases it makes no difference if you are self-employed or a full-time employee – the priorities are pretty evenly matched across the two groups. Except however when it comes to stepping in to provide financial support to family members and dependants, according to research from modern mutual Scottish Friendly.
The findings form part of Scottish Friendly’s 2024 Family Finance Tracker, which examines the savings and investment habits of adults across the UK. The study of 2,600 adults shines a light on the reality of people’s financial situation and their aspirations.
Conducted by the Centre for Economics and Business Research (Cebr) on behalf of Scottish Friendly, the research findings show that 55% of self-employed people are finding it harder to balance their short, medium and long-term financial goals now than they did 10 years ago (with 29% of those saying they are finding it ‘much harder’ these days). Despite that, when it comes to prioritising short-term financial goals, twice as many self-employed adults are prioritising saving for a rental deposit for a dependant than their full-time employed peers are (6% compared to 3%).
Meanwhile 8% of self-employed adults are also prioritising saving to pay off the debt of a family member or dependant. Compared to 5% of people in full-time employment.
There was one clear divergence in how both groups prioritise their medium-term financial goals and that was paying off credit card and personal loan debt, which for 24% of self-employed adults is a main goal, compared to 30% of adults in full-time employment.
The other stand-out difference was in how the two prioritise long-term financial goals. For 26% of self-employed adults ‘retiring early’ is the main target. That jumps to 31% for people in full-time employment. Paying off the mortgage early, the main long-term goal for 17% of self-employed adults, is a priority for 29% of those in full-time employment.
Kevin Brown, savings specialist at Scottish Friendly, comments: “With regards to decisions like retiring early, it is a safe assumption that you’re unlikely to choose to be self-employed, with everything that this entails, if you didn’t actually enjoy what you do! So, that result didn’t come as too much of a surprise.
“What was surprising, however, was the fact that the self-employed are twice as likely to shoulder the financial strain of covering a dependant’s rent deposit, and significantly more likely to do the same when it comes to paying off family members’ debt. It raises an interesting question about the entrepreneurial spirit!”
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
The Group continues to flourish through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.
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