Self-employed workers have played a pivotal role in helping the UK’s economic recovery – but most of then are failing to save enough money for their retirement.
Latest research has highlighted a worrying lack of pension planning among people working for themselves.
DY Tax Planner, Pam Mason said: “Research from HM Revenue & Customs, and the Office for National Statistics, reveals that fewer than one in 10 self-employed people made personal pension contributions in the last financial year.
“There are 4.6 million people currently registered as self-employed in the UK, which means more than 4.1 million are putting nothing aside for their retirement.
“Contrast that with 2002, when more than a third of self-employed people were making pension contributions.
“More workers than ever before are benefiting from auto enrolment into company pension schemes. Yet at the same time, it seems that those who do not have the opportunity of joining such a scheme are turning their backs on saving for retirement altogether.
“It doesn’s matter whether you work for a company, or whether you are self-employed – the same rules apply.
“You need to save as much as possible for your retirement during your working life.
“It is vital for self-employed people to take professional financial advice before it is too late. Otherwise, the flexibility which they enjoy during their working lives could be swapped for a harsh, and very inflexible time when they retire.”
Tax Planner, Pam Mason