Self-employed advised to adopt long-term pension saving plans
Just 15% of the UK’s self-employed workers expect to have enough money to live on in retirement, new study by Aegon reveals
Self-employed workers are being advised to create long-term saving plans following findings from Aegon which reveal 75% are not regularly saving for retirement, with only 15% optimistic that they’ll have enough money to live on.
Of the 15 countries surveyed for the study, Aegon found the UK exhibited the second-lowest amount of retirement planning and saving among the self-employed.
Despite this, many of the respondents said they felt positive about being self-employed, with 50% optimistic that they will retire at a time that is right for them, and only 9% expecting never to retire.
While 53% of the self-employed respondents cited plans to continue to work past the age of 65, positive reasons such as enjoyment of the work were consistently given for this decision.
Aegon has suggested that the study highlights how pension reforms, including the introduction of auto-enrolment, have neglected the self-employed who are required to pay contributions into their employees’ pensions while receiving no employer or government contributions of their own.
Kate Smith, head of pensions at Aegon, commented: “The self-employed face unique challenges when it comes to saving for retirement […] a variable income means many don’t have certainty of how much they’ll earn from one month to the next, making saving difficult.”
Smith has advised that such workers look to better prepare for retirement by adopting “a long-term do-it-yourself approach which is currently being overlooked by too many of the self-employed”.