Curtain call

By SALLY HAMILTON
Updated: 19:00 EST, 4 June 2002

ACTING raises the curtain on a life of fame and wealth, but only for the tiny number of stars who make the big time. For the rest, money is a constant worry.

Jobbing actors typically earn between £15,000 and £40,000 a year, with many earning much less. And because they are so busy trying to make ends meet, they often fail to save for a pension and end up working beyond retirement age.

According to a survey by the actors' union Equity, which has 37,000 members, 54% of actors said they earned less than £10,000 in 1999. Only 2% claimed to earn more than £100,000.

The fortunate few who land jobs as TV soap regulars enjoy comfortable salaries of more than £60,000 a year - more if the series is sold overseas. Repeat fees and overseas royalties produce a useful top-up income, according to Equity's Martin Brown. 'An actor in a much-repeated TV series such as Dad's Army could make substantial amounts,' he says. 'Those in stage musicals can earn royalties from recordings.'

The stereotype of a 'resting' actor lounging around between auditions claiming benefits, simply does not exist, according to Equity. Brown says: 'Our research found that 18% of actors claimed Jobseeker's Allowance in 1999, with just 5% being accepted. Performers are busy working most of the time doing several jobs. 'The typical actor has many earning skills both from inside the industry - such as acting and teaching drama - and outside.'

Actors are entitled to claim benefits because they pay Class 1 National Insurance, though they are classified as self-employed for income tax. Gary Morris of London-based independent adviser Berry Birch & Noble says: 'They are a hybrid, but it can work to their advantage. They are entitled to a state pension and other benefits.'

He says they can also offset many self-employment costs against income tax. Financial advisers say performers are adept at providing for periods when they are not in work and generally do not overstretch themselves. But their lifestyle and unpredictable income makes some financial providers nervous.

Dudley Parker, managing director of First Act, a specialist insurer and financial adviser, says finding mortgages-insurance and pensions can be a challenge. Though many spend more in rent than they would on mortgage repayments, the fact that they flit from one job to the next with no permanent home address gives them a poor credit rating.

David Pollard, First Act's mortgage specialist, says: 'This is why some performers use their parents' home as their permanent address. Even so, certain lenders will lend at normal rates.'

Life insurance and accident cover can also be expensive But Equity has a deal to cut premiums, which is particularly useful for dancers who might lose work through injury. The image of drug and drink-obsessed partygoing actors means that affordable insurance can be difficult to find. And with performers often away from home for long spells, some home insurers are deterred. Equity is a good place to start.

• Pensions have typically been overlooked by actors and their employers, but stakeholder plans have changed the picture.

Equity offers a low-cost stakeholder-style pension run by specialist financial adviser First Act.

Certain employers, such as West End theatres and the BBC, pay 5% into the plan as long as the memberpays at least 2.5% of their wages.

Stakeholder was the best deal for Mark Murphy, whose film roles include a reporter in Notting Hill, the shell-shocked soldier seen carrying his severed arm in Saving Private Ryan, and a droid in Star Wars: The Phantom Menace. Mark, 32, worked as a hospital porter in his teens to pay his way through drama school and has acted ever since.

He now works as an entertainments manager at Jumping Jacks, a bar in East Grinstead, West Sussex, but his hours mean he is able to go to auditions. 'You learn to live with a fluctuating income,' he says. 'I took out a stakeholder pension with Virgin One so that I could pay more when I could afford it and less while I'm waiting for payments from a job to come through.'

By using an accountant, Mark can offset professional essentials against tax, such as the cost of The Stage magazine, make-up and even deodorant. 'When you dance on stage, you get particularly hot,' he says.