A recent study reveals that self-employed individuals are more likely to experience improved financial resilience in 2023, despite having faced difficulties during the cost-of-living crisis.
The HL Savings & Resilience Barometer report indicates that self-employed people have an average of £154 surplus income per month compared to £170 for employees, and fewer have enough savings to cover three months’ worth of essential spending (68% vs 69%).
However, as the labour market tightens, opportunities for freelancers are increasing, and their financial resilience is predicted to improve. By the end of 2023, self-employed individuals are expected to have more surplus income than their employed counterparts.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “There’s some hope that the tide may be turning for self-employed people, as their numbers swell and a few of their tougher challenges begin to ebb.”
Coles added: “The Barometer forecasts that on average we’ll all lose some short-term resilience in 2023, but when it comes to having enough cash at the end of the month, self-employed people will lose less than their employed counterparts, so will overtake them to become more resilient.”
