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Self-employed workers are heading towards a pension savings crisis according to recent research, as they cannot afford to save for their retirement.
The nationwide study determined that 43% of self-employed workers admit they do not have a pension; in stark contrast when compared to just 4% of those in employment without a pension, with 36% of the self-employed asserting the core reason being that they are unable to afford to save for retirement.
With 4.8 million self-employed workers making up just over 15% of the UK workforce, the research suggests they may be heading for a less than comfortable retirement, with many not planning to stop work. Around 31% expect to be relying entirely on State Pension to fund their retirement (approximately £8,545 per year), while 28% intend to be reliant upon their business to provide the required income.
Self-employed workers tend to be more focused on saving for day-to-day emergencies than retirement, with 64% saving to build a safety net, compared to only 57% of those in employment. Despite having more complex requirements than someone in employment, only 10% of self-employed workers regularly see a financial adviser.
All of this combines to create an education gap when it comes to the importance of pensions, with 20% of the self-employed admitting they do not take pension saving seriously, believing it does not apply to them.
For legal advice or assistance on retirement planning and pensions, contact our expert team today.
