Freelancers over 50 hit with more costs. Where are the perks?
- Average premiums have risen 6.2% for the over-50s in the last three months, with motorists aged 25-49 also seeing increases of 4.1%.
- IMF forecasts that the UK’s planned corporate tax rises from 19% to 23% may constrain the UK’s economic growth in 2023
- In 2023, the British government will also be pulling the plug on its super deduction relief for capital spending
- Discounts and perks are still available for people over 50, you just need to know where to look
Most freelancers in their prime are aged in the 45s and above bracket. They have had established careers and have since gone freelance as contractors or consultants in their chosen fields. Some have gone freelance by choice others by survival if they were let go at the height of the COVID pandemic. But if you are over 50 you will see an injustice not only to your corporate tax bill because you are likely generating a healthy income from your experience but in other everyday costs, too. One such example is insurance.
The average home insurance premium offered to over-50s increased by 5.8 % in the 12 months to January 2022, meaning people in this age group face paying £161 on average. But that’s not all.
It would seem that price “equilibrium” is returning to the car insurance market after new rules that came into force on 1 January 2022. The rules’ objective is to tackle the practice of “price walking” which pushed premiums up by as much as 5% in the month of the announcement, according to the latest analysis from Consumer Intelligence. Basically, it’s a numbers game, and your premiums are going up regardless of whether you have made a claim in the past 12 months.
Premiums are now 4.3% higher since the start of 2022, with almost all this rise accounted for in the month of January alone. Average overall premiums have increased 16.4% since October 2013 when Consumer Intelligence first started collecting data.
Although premiums today are still more than 10% lower than pre-COVID prices, and 16.3% off their pricing peak in September 2017.
Age and how it determines how much you pay for car insurance
Average premiums have risen 6.2% for the over-50s in the last three months, with motorists aged 25-49 also seeing increases of 4.1%. Only our youngest driver cohort – the under-25s – have recorded price falls in the last three months of 2.3%.
The annual cost of car insurance is still an eyewatering £1,717 for the under-25s; this compares to £610 for those aged 25-49 and just £370 for the over-50s.
The South West (6.6%) and Wales (6.2%) have led the way with the biggest increases to their premiums in the last three months.
All other UK regions recorded price increases in the last three months, although London saw the smallest uptick of just 0.8%.
Yet Londoners (£1,216) continue to pay the most for their annual car insurance, with the West Midlands (£876) following in second. Scotland (£416) is now the cheapest UK region to buy car insurance.
What over-50s perks are still out there?
There are still some discounts or perks to enjoy when you reach age 50 and higher. Travel, cinema, retail, prescriptions and eye tests are just some. SunLife has outlined some of those perks in more detail here.
Many museums, theatres, cinemas and art galleries across the country offer concession prices for over-60s for general entry or exhibition tickets, according to over-50s site, Rest Less. These include the Beamish Open Air Museum and the Tate Modern.
Most major cinemas offer discounted ticket prices for over-60s too. Empire’s Seniors programme also offers exclusive screenings to people in this age group, with free tea or coffee beforehand.
If you’re over 65 and a fan of the theatre, then the Royal Shakespeare Company offers 20% off on any non-premium seats on Monday and Tuesday evenings, plus any midweek matinees. The National Theatre also offers reduced prices on midweek matinees throughout the year.
If you have pets that need looking after while you’re off on holiday, Rest Less has partnered with TrustedHousesitters* to offer you 50% off your first year’s membership with the code RESTED50.