'Crisis' warning as 70% of self-employed are not saving into a pension

'Sleepwalking into retirement misery'

Hannah Godfrey
clock • 2 min read

Some 3.5 million self-employed workers in the UK are not saving into a private pension, according to new research from the Institute for Fiscal Studies, and so risk facing severe financial difficulties in later life.

According to the research the proportion of self-employed workers saving for retirement has declined over the last two decades, from half (48%) in 1998 to less than two-in-five (16%) in 2018.  At the same time, the number of self-employed workers has grown, by 3.8 million - nearly 13% of the workforce - to 4.8 million, or just over 15% of the workforce.  AJ Bell senior analyst Tom Selby said self-employed workers who are not saving into a pension "risk facing severe financial difficulties in later life", adding: "Make no mistake about it - without urgent action, there is a real risk m...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Defensive income before retirement: A four layered framework

Defensive income before retirement: A four layered framework

Entering decumulation can be an unsettling time for clients

Joe Simpson
clock 10 August 2026 • 4 min read
The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

The FCA's decumulation challenge: Can UK REITs help deliver sustainable retirement income?

A look at the three Ss of retirement income

James Peel
clock 04 August 2026 • 7 min read
What the decumulation shift means for advice firms, and how the best are responding

What the decumulation shift means for advice firms, and how the best are responding

'Technology is part of this picture in ways that are worth being honest about'

Andy Zanelli
clock 14 July 2026 • 4 min read