- One third of ‘Resetters’ set up their own business
- The rise of Hobbypreneurs
A new report launched today by Britain Thinks and Investec Click & Invest, the new online investment management service, reveals unprecedented numbers of people are making huge changes to their lives because they have greater confidence in their own abilities, despite economic uncertainty, changing work patterns and less job and financial security.
This has fostered a stronger ‘can do’ attitude in society, and the report describes this trend of more people making radical changes to take control of their lives as ‘Resetting’ and says there is no age limit to this. Over one third of the British population have already ‘Reset’, and a further 32% of the population are planning to make major adjustments in the next five years, such as changing to a more rewarding career, setting up a new business or even turning a hobby into a profit-making venture.
However, a post General Election snap poll conducted as part of the analysis shows that this trend has become even more pronounced in light of increased uncertainty. 85% of the population now say they would like to have even greater control over their future, and over half (56%) are now likely to make a major change in the next five years.
Almost one third (30%) of existing ‘Resetters’ have set up their own business and a further 22% have made a hobby pay – a new group of entrepreneurs the report calls ‘Hobbypreneurs’. A further 30% have changed careers to do something more rewarding. They are also much more focused on financial planning and investments than the population as whole.
The report was commissioned by Investec Click & Invest (www.clickandinvest.com), the new online investment management service for individuals with £10,000 or more to invest. Click & Invest combines the experience of a team of Investment Managers and over 180 years of wealth management experience with the convenience and ease of an online service, opening the door for individuals who wouldn’t usually be able to access traditional wealth management services.
Click & Invest has an in-house Research team and a dedicated team of Investment Managers who create and actively manage investment portfolios on behalf of clients. These teams constantly analyse the markets to make investment decisions, and select the best funds from whole of the investment market with the aim of outperforming the market to deliver returns for clients.
Commenting on the report, Viki Cooke, Founding Partner of Britain Thinks, said: “Our research identifies that across the population there is a move towards empowerment as people recognise that in a world of increasing uncertainty, they need to take control of their lives and ‘Reset’. This has implications for work and careers, lifestyle and financial planning. We see this as a societal trend which is set to continue.”
Jane Warren, CEO of Investec Click & Investec said: “We commissioned this report to ensure that we really understand the way our clients are thinking. What is exciting is that people are approaching their futures in a positive, planned and strategic way to ensure they live their lives the way they want to. This includes carefully and considered financial planning and decision-making.”
Andrew Summers, Head of Collectives at Investec Wealth and Investment, highlights the benefits to UK PLC of the report’s findings: “Small businesses have long been the engine room of the UK economy, so the fact that more people are taking control and setting up their own enterprises is likely to have a positive impact across all sectors”.
Positive attitude to taking control
The research reveals that across the population, there is a very positive attitude to making fundamental changes to the way we live our lives:
- 79% agree “there’s no age limit on making a big change to your life”
- 79% agree “I’d rather do something I love than something well paid”
- 75% agree that “gaining life experience is more important to me than material wealth”
This is against a backdrop of huge political and economic uncertainty around Brexit, changing expectations of work with almost three quarters of respondents (71%) recognising that there is no such thing as a ‘job for life’. There’s also a greater onus on personal responsibility in terms of financial security with 87% agreeing that being financial secure is important to achieving your goals. These factors are providing impetus for people to take greater control of their lives.
Two groups of Resetters
The report identifies two distinct types of ‘Resetters’ amongst those who have taken proactive steps to live their lives differently. 10% of the population are ‘Recent Career Resetters’, of which68%have changed their career to something they feel more passionate about in the last year, gone freelance (23%) or set up their own business (26%). Their average age is 35, they are more educated (49% have a degree compared to 29% of the general population), less likely to own property (49% compared to 61% of the general population) and less likely to have children (48% do not have children compared to 39% of the general population). They are also more likely to have some savings and investments (84% versus 78% for the general population).
The second group are the ‘Seasoned Resetters’ which account for 19% of the population. This group has achieved both a career change and lifestyle change – 32% have set up their own business and 26% have made a hobby pay. They tend to be older with an average of age of 52. Almost three quarters (70%) are property owners, compared to 61% of the general population and are more likely to have higher value savings and investments.
Consistent across all ‘Resetters’ is that they are driven, motivated hard workers. They also ensure that the changes they make do not have a negative impact on them or those around them. To do this, they plan in three ways – they ensure their financial security, strategically plan the changes they are going to make and ensure they are well connected making them well-placed to take advantage of opportunities when they arise.
- Financial planning – ‘Recent Career Resetters’are more likely to start an investment plan than the general population (55% compared to 27%) and 34% of ‘Seasoned Resetters’ describe themselves as already financially secure compared to 20% of the general population.
- Strategic planning – 81% of Recent Career Resetters agree that they are always working towards their next goal compared to 61% of the general population and Seasoned Resetters tend to have achieved more goals than the average person.
- Making connections – Recent Career Resetters are almost twice as likely to be networking than the general population and Seasoned Resetters are very well connected in comparison to the general population – they are much more likely to be volunteering (63% vs 25%) and around four times more likely than average to be a member of a local organisation or board (13% vs 3%) or be a non-exec director (12% vs 3%).
These findings have major implications for the way that people in Britain today approach planning their futures as they seek to take greater control of their lives. The changes are not random but strategic. Resetting requires planning – particularly financial planning – to ensure that the goals people want to achieve are attainable.
UK seeks G7 consensus on digital competition after Facebook blackout
LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.
Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.
“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.
“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”
Dowden said recent events had strengthened his view that digital markets did not currently function properly.
He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.
“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.
Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.
“Nick strongly agreed with the Secretary of Stateâ€™s (Dowden’s) assertion that the governmentâ€™s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.
Britain will host a meeting of G7 leaders in June.
It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.
The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.
Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.
(Reporting by William James; Editing by Gareth Jones and John Stonestreet)
Britain to offer fast-track visas to bolster fintechs after Brexit
By Huw Jones
LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.
Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.
“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.
Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.
Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.
The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.
“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.
Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.
The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.
It also recommends more flexible listing rules for fintechs to catch up with New York.
“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.
“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”
Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.
“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.
A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.
“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.
The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).
“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.
($1 = 0.7064 pounds)
(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)
G20 to show united front on support for global economic recovery, cash for IMF
By Michael Nienaber and Andrea Shalal
BERLIN/WASHINGTON/ROME (Reuters) – The world’s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund’s resources so it can help poorer countries fight off the effects of the pandemic.
Finance ministers and central bank governors of the world’s top 20 economies, called the G20, held a video-conference on Friday. The global response to the economic havoc wreaked by the coronavirus was at top of the agenda.
In the first comments by a participating policymaker, the European Union’s economics commissioner Paolo Gentiloni said the meeting had been “good”, with consensus on the need for a common effort on global COVID vaccinations.
“Avoid premature withdrawal of supportive fiscal policy” and “progress towards agreement on digital and minimal taxation” he said in a Tweet, signalling other areas of apparent accord.
A news conference by Italy, which holds the annual G20 presidency, is scheduled for 17.15 (1615 GMT)
The meeting comes as the United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies going despite COVID-19 lockdowns.
But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain.
German Finance Minister Olaf Scholz warned earlier on Friday that recovery was taking longer than expected and it was too early to roll back support.
“Contrary to what had been hoped for, we cannot speak of a full recovery yet. For us in the G20 talks, the central task remains to lead our countries through the severe crisis,” Scholz told reporters ahead of the virtual meeting.
“We must not scale back the support programmes too early and too quickly. That’s what I’m also going to campaign for among my G20 colleagues today,” he said.
Hopes for constructive discussions at the meeting are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, became U.S. president.
While the IMF sees the U.S. economy returning to pre-crisis levels at the end of this year, it may take Europe until the middle of 2022 to reach that point.
The recovery is fragile elsewhere too – factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, and in Japan fourth quarter growth slowed from the previous quarter with new lockdowns clouding the outlook.
“The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy,” a G20 official said.
But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF — the global lender of last resort.
To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF’s own currency called the Special Drawing Rights (SDR), but the idea was blocked by then U.S. President Donald Trump.
Scholz said the change of administration in Washington on Jan. 20 improved the prospects for more IMF resources. He pointed to a letter sent by U.S. Treasury Secretary Janet Yellen to G20 colleagues on Thursday, which he described as a positive sign also for efforts to reform global tax rules.
Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation of IMF resources, of $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now.
The G20 may also agree to extend a suspension of debt servicing for poorest countries by another six months.
($1 = 0.8254 euros)
(Reporting by Michael Nienaber in Berlin, Jan Strupczewski in Brussels and Gavin Jones in Rome; Andrea Shalal and David Lawder in Washington; Editing by Daniel Wallis, Susan Fenton and Crispian Balmer)
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