The self-employed must save more for their retirement

Britain’s boom in self-employment threatens to leave millions of people short of money in retirement, says David Prosser. Too many are making little or no provision for later in life.

Britain's boom in self-employment threatens to leave millions of people short of money in retirement, with large numbers currently making little or no provision for later in life.

The number of self-employed people in the UK rose to 4.8 million last year, accounting for just over 15% of the labour market, according to data just published by the Office for National Statistics (ONS). But the ONS figures also reveal that nearly half of self-employed workers between the ages of 35 and 54 have no pension savings at all by contrast, only 16% of employed workers in this age-group are in the same position. And the outlook for older self-employed people doesn't look much brighter. Some 30% of people over the age of 55 working for themselves have no pension wealth, says the ONS.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.