One third of 'Resetters' set up their own business and we're seeing the rise of the 'Hobbypreneur'
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 which 68% 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.