UK. How to help the self-employed boost their pension savings
Just prior to the pandemic the self-employed made up about one in seven of the workforce, and while that is likely to have dipped somewhat through the pandemic, this remains much larger than a generation ago, driven by growth in self-employment in the decade after the financial crisis.
Despite the growth in the number of people who are self-employed over the years, pension savings for this group have continued to fall.
A recent report from the Office for National Statistics paints a truly harrowing picture of the retirement outlook for a vast number of people.
Almost a third said they did not expect to have any pension provision beyond the state pension when they retire, and a particular lack was highlighted in those who are self-employed.
While it comes as little surprise that the self-employed generally have lower levels of pension savings, the more concerning issue is the fact that just 20 per cent of self-employed people said they were paying into a pension between April 2018 and March 2020, which shows just how dire the situation currently is.
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