We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA

New research suggests that 45% of self-employed workers are not saving into a pension

Research by the Association of Independent Professionals and the Self-Employed (IPSE) and financial planning consultants CMME Contractor Wealth has revealed that 15% of freelancers don’t have a private or personal pension, while 30% say that despite having a pension, they are not currently paying into it.

Unlike employees, the self-employed do not benefit from automatic enrolment into a workplace pension or from additional contributions by an employer. The survey has identified three key reasons why freelancers are not currently saving into a pension:

  • 34% say they have other financial priorities;
  • 24% say they can’t afford to put money into a pension;
  • 24% said that they stopped contributions to a pension after becoming self-employed.

Boost in self-employment numbers

The latest figures from the Office for National Statistics show that there are currently 154,000 more self-employed workers in the UK, compared to this time last year.

In total, there are now 4.4 million freelancers in the UK. There has been a significant rise in the number of women choosing to work for themselves, with an additional 93,000 self-employed women compared to last year.