Self-employed workers worried about retirement savings, study finds

A new survey of 1,000 self-employed workers from across the UK has revealed that almost half (46 per cent) are worried they will not have amassed enough savings for themselves by the time they reach retirement.

The research, which was carried out by the Association of Independent Professionals and the Self Employed (IPSE), found that a further 38 per cent of workers were “seriously concerned” with their pension situation.

Interestingly, the figures come at a time when the Government and The Pensions Regulator (TPR) are under fire for failing to come up with a way by which an auto-enrolment pension scheme can be introduced for self-employed workers in the UK.

Current statistics suggest that there are approximately 4.8 million self-employed people working in the UK – many of whom appear to be worried about their retirement.

In light of this, IPSE has backed a report recently published by think tank Demos, which has called on the Government to reform the pensions system by introducing a new auto-enrolment pension scheme for the self-employed, whereby firms should make the same level of contributions they make toward the pensions of traditional workers.

If the proposed scheme was taken on board, the Government would then need to match pension contributions, the think tank has said.

These contributions would need to be funded by an “engagers tax” – which would be paid by all organisations that rely on self-employed labour on a day-to-day basis, it added.

Demos’ full report can be accessed here.