Gig economy workers could boost the size of their pension pot by £75,000 if a form of automatic-enrolment (AE) were extended to cover all workers, according to research by the Pensions Policy Institute on behalf of Zurich.
The Restless Worklife study of more than 600 gig economy workers found that a typical 25-year-old, earning £25,000 could end up with a £75,600 lump sum at retirement if they saved 4% of their income. The percentage contribution is based on on the Taylor review proposal which said workers should be able to contribute 4% of their income when completing a tax return. When combined with the state pension, a typical gig economy worker would have an income at retirement of £13,500, the research found. At present, there is no mechanism for auto-enrolling the self-employed into a pension, ...
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