By Jonathan London on 2nd September 2015

Self-employed people ‘concerned about pensions’

Self-employed people are currently worried about whether they will have enough money to see them through their retirements, according to an industry survey.

A national survey from the Association of Independent Professionals and the Self-Employed (IPSE) has shown that 54.4 per cent of freelancers are concerned about their finances post-retirement, with 37.3 per cent saying they are unable to contribute towards a pension fund.

It was also shown that nearly one in ten of those polled are unsure of how to save for retirement, underlining the need for new solutions to be developed to help self-employed workers to set aside money for after they finish their careers.

Currently, 63.2 per cent of freelancers are saving through a pension fund, with 33.3 per cent using property and 28.9 per cent relying on stocks and shares as their means of putting money aside.

Chris Bryce, IPSE’s chief executive, said the government needs to make the most of its planned review into self-employment, which will look into the issues surrounding how people who work for themselves save for their retirement, among other topics.

He observed that it is more difficult for freelancers to set aside a regular amount for their futures, due to the fact they do not have an employer making contributions to a pension pot on their behalf.

This creates the need for innovative solutions specifically aimed at the self-employed, such as a flexible pension product that would allow individuals to withdraw the last two years of contributions without penalty.

Mr Bryce concluded: “With the economy moving in the right direction after a difficult few years, it is important that the self-employed feel financially safe if they are to continue to lead the way towards a strong and flexible economy.

“Therefore, we urge the government to act sooner rather than later.”

Jonathan London Written by Jonathan London

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