Lack of savings puts self-employed under strain

Almost half of self-employed people in the UK have low levels of savings, research from Aldermore shows.

A study of 1,799 adults found that 46% of self-employed people have less than £1,000 in cash savings, while 19% have no business savings at all.

Many struggle to manage saving alongside other financial concerns for their business, with 45% saying they are unable to deposit cash savings as well as maintaining their day-to-day cashflow.

For 27%, this is because they do not see saving as a priority, and 26% would prefer to keep spare money in their current account.

The majority (69%) of self-employed business owners think it's important to put cash aside, and feel they need to be more resilient than they currently are.

Ewan Edwards, head of savings at Aldermore, said:

"It's clear that sole traders understand the need to improve their savings and cashflow, but this can often be easier said than done.

"Many businesses do not succeed because they fail to plan for unforeseen events or manage cashflow properly.

"Better business education and support could help many small businesses avoid trouble that often leads to difficulties."

Disclaimer

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

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