Pensions - Articles - Comment on Nest Insight and DWP Covid19 impact research

 “The trend towards self-employment means this group have to be self-reliant when it comes to saving for retirement. The self-employed are a diverse group and face barriers to saving, including irregularity of income. They are excluded from auto-enrolment and often pension saving is lower down the priority order. Targeted, relevant communications has the potential to influence the self-employed savings habits and financial wellbeing. 

 “The impact of the pandemic has been devasting for many self-employed, not only in terms of their businesses but also on their ability to save for their future. Our research* found that the self-employed were the most adversely affected by the crisis with over 36% reducing their pension savings or stopping altogether. For the employed only 8% reported reducing or stopping pension contributions, although for furloughed workers it was higher at 24%.

 “One thing that the pandemic has clearly demonstrated is the need for financial resilience and access to liquid savings as well as pension savings to secure their immediate and longer term futures.”

 * Aegon research carried out with 2000 UK adults between 15th-19th May 2020.