Surge in self-employment is stoking the pension crisis, survey finds

Self-employed workers in the UK are heading towards a pension saving crisis as they cannot afford to save for their retirement, reveals new research from Prudential.

More than two fifths of those working for themselves admit they do not have a pension, compared to just four per cent of those in employment.

 A key reason for that, the survey found, is that 36 per cent of the self-employed say they cannot afford to save for retirement.

Self-employed workers now make up 15.1 per cent of the UK workforce with more than 4.8 million people working for themselves, but this research suggests they are heading for a less comfortable retirement.

Around one in three (31 per cent) say they will be relying entirely on the UK state pension to fund their retirement.  The UK state pension is currently worth just £8,545: one of the least generous in northern Europe.

The survey also found that 28 per cent will be reliant on their business to provide the income they need.

Other key findings include:

• 64 per cent of the self-employed save to build up a safety net in case of emergency – compared to 57 per cent of those in employment

• One in five (19 per cent) of self-employed people are not confident with money and financial matters

• A quarter (24 per cent) of the self-employed worry that they do not know enough about money

• A fifth (20 per cent) admit that they do not take pension saving seriously as they don’t think it applies to them

©2018 funds europe

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