Most self-employed workers not saving for retirement

A new survey has revealed that most self-employed workers do not have sufficient retirement funds in place.

These findings are worryingly putting many self-employed professionals in a situation where they may not be financially secure in later life.

Many self-employed workers are not aware of their pension options

The research, conducted by Aviva, found a concerning gap in retirement planning among the UK’s self-employed, freelancers and digital nomads – those who use technology to work remotely while travelling and living in various locations.

The figures show:

• 31% of digital nomads, 23% of self-employed workers and 18% of freelancers say they intend to start saving soon.
• 30% of digital nomads, 32% of self-employed workers and 34% of freelancers admit to not yet having taken any steps to prepare for their retirement.

The flexible workers surveyed also showed a lack of awareness when it comes to their personal pension options.

Just 25% of digital nomads, 24% of self-employed and 22% of freelancers know about self-invested personal pensions (SIPPs) and stakeholder pensions.

Commenting on the findings, Alistair McQueen, Head of Savings and Retirement at Aviva, said, “This research highlights a clear gap in retirement planning for people who are self-employed and freelance. Without auto-enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.

Aviva advises that even making small, regular steps, such as opening a personal pension and setting affordable monthly contributions, can make a big difference.

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