Pension savings shortfall among the self employed

Almost two-thirds of self-employed people currently have no pension savings, while more than a quarter aren’t making any savings at all

Almost two-thirds of self-employed people currently have no pension savings, while more than a quarter aren't making any savings at all, according to new research from asset manager Fidelity International. Employed people are roughly half as likely to be falling short.

Fidelity's report warns that many people working for themselves face an uncertain future, both missing out on financial support from employers such as pension contributions, and failing to make their own provision.The research will add to the pressure on the government to consider mechanisms for bringing the self-employed into the auto-enrolment pensions system, with ministers currently considering several proposals for extending the scheme's reach.

But Fidelity also urged people to take action for themselves. While self-employed people often have unpredictable income streams and may have little disposable income, particularly when building up a business both individual saving accounts (Isas) and self-invested personal pensions (Sipps) are good saving options. Both offer generous tax reliefs, which boost the value of any savings people are able to make. Both products also feature flexible rules on contributions, allowing people to make deposits as and when their finances allow, rather than demanding fixed, regular sums.

Recommended

How to find an angel investor for your business
Small business

How to find an angel investor for your business

Make sure your start-up business has the right type of backer before signing a deal, says David Prosser.
11 May 2022
AJ Bell's new app aims to make investing a Dodl
Investments

AJ Bell's new app aims to make investing a Dodl

Dodl, AJ Bell’s new app-based investment service, is cheap – although a wider range of investments would be welcome, says David Prosser.
2 May 2022
It's time to find some financial peace of mind
Advertisement Feature

It's time to find some financial peace of mind

Book a free, no obligation retirement consultation with a Brewin Dolphin adviser.
28 Apr 2022
Shortage of Sharia-compliant pensions lets down savers
Pensions

Shortage of Sharia-compliant pensions lets down savers

A lack of Sharia-compliant pensions is leaving many people unable to save for retirement.
27 Apr 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
High inflation will fade – here’s why
Inflation

High inflation will fade – here’s why

Many people expect high inflation to persist for a long time. But that might not be true, says Max King. Inflation may fall faster than expected – and…
13 May 2022
What the Ukraine crisis might mean for ESG investing
Advertisement Feature

What the Ukraine crisis might mean for ESG investing

The Ukraine crisis has brought many of the issues around ESG investing into sharper focus. Where does the sector go from here?
3 May 2022