You are here: Home - Saving & Banking - News -

Self-employed not prepared for retirement

Written by:

Almost 6 out of 10 self employed people are over 50, but only a third (36%) are saving adequately for their retirement, and 2 in 5 (38%) are not saving at all, according to Scottish Widows.

The self-employed have no access to the State Second Pension (S2P), no employer to contribute to their pensions and, under new reforms, no automatic enrolment in to personal accounts, which could put them in a very vulnerable position.

Ian Naismith, head of pensions market development, commented: “The position of the self-employed is a particular concern. What is more, over half (54%) only became self-employed in the last 5 years, highlighting how many of us currently in good employer schemes may find ourselves over 50 and having to strike out alone.”

The study also shows that less than a quarter (23%) of self-employed people feel they are able to save regularly. On average they have both a higher mortgage debt of £146,945 and monthly non-mortgage debts of £9,643 compared to employed people, which is likely to impact on their capacity to save.  


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Current account switching takes off

Over a million customers plan to switch banks over the next six months according to research by comparison website