New research from the ABI today makes the case for the pending pensions Green Paper to implement cha...
New research from the ABI today makes the case for the pending pensions Green Paper to implement changes that would encourage the 2.5 million self-employed to save more towards pensions and cut the savings gap by up to £2bn.
According to the survey of about 1,000 employed and self-employed people, rates of pension saving would increases substantially if the government were to introduce incentives that would "ensure a level pension playing field for all workers".
Rates of saving among the self-employed are typically low, the report says, mainly because there is no matching of funds as is provided by many employers for their employees in company schemes.
Employers contributing 5% or more can boost takeup of pension schemes to 69% from 13% compared to instances where employees are the sole contributors.
And tax incentives are responsible for making 48% of those surveyed more prone to save, the ABI says.
It does not make sense for pension planning and provision to vary according to type of occupation or type of employment, and the Green Paper must ensure that all workers can save for a pension regardless of who pays the salary, the association says.
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