Self-employed Unable to Afford Pension Payments
Only 17% of self-employed workers surveyed regularly contribute to their pension, with 6% planning to “never stop working”
Research has revealed worrying statistics regarding pensions for self-employed workers. The number of self-employed people has risen to 4.6 million – making up 15% of the UK workforce – but 52% admit to having no plans to start putting money into a pension.
The report, conducted by financial services group Prudential, found that 43% of entrepreneurs have no pension with the majority (57%) citing affordability as the reason against one – the majority of entrepreneurs are re-investing profits back into their business.
Only 17% regularly contribute to their pension and 6% add to theirs when they can. Of the entrepreneurs who have decided against putting money into a pension, 27% have plans to eventually start. And though 20% remain undecided, 16% are planning to rely on their businesses to fund their retirements and another 6% state they will never stop working.
Retirement income expert at Prudential, Stan Russell, commented on the figures:
“The financial pressures of starting and growing a business often means that spare cash is hard to come by.
“Pension reforms that are due to come into effect in April 2015 will increase the flexibility of pension saving, but the onus is still very much on individuals to save as much as possible from as early as possible.”