The research, which collected the opinions of 1,000 self-employed people in the UK, found that 81% of self-employed workers hold pension savings and 72% have contributed within the past year, levels of engagement that challenge the idea that the self-employed are opting out of retirement saving altogether. Yet this engagement does not translate into confidence. Only 22% feel very confident their pension will support them later in life, while more than a quarter (27%) say they are not confident at all.
The findings suggest that short-term financial pressures are crowding out long-term planning. Nearly half (47%) cite income-related barriers as their main obstacle to pension saving, with 31% pointing to unpredictable earnings and 20% saying they cannot afford regular contributions. For those already saving, income volatility has a direct impact on behaviour, with 16% struggling to maintain contributions when earnings fluctuate, resulting in episodic rather than consistent saving patterns.
Crucially, the issue is not a lack of trust or willingness to engage. Just 2% cite distrust in pensions as a concern. Instead, accessibility and practicality remain key challenges. One in five (20%) self-employed pension holders find pensions confusing or hard to manage, while 13% say products are not designed around self-employed working patterns.
Whilst the Pensions Commission has highlighted the declining pension participation rate among the estimated 3.75 million self-employed population, this survey shows that even amongst those who do engage, income volatility makes saving fragile and confidence low. This research underscores the need for pension solutions that better reflect fluctuating incomes and offer greater clarity and confidence for those outside traditional employment.
Lisa Picardo, Chief Business Officer UK at PensionBee, said: “These findings show that the self-employed are trying to do the right thing, but are being held back by income volatility and a system that isn’t built around how they work. Many are engaging with their pensions when they can, yet still lack confidence and feel uncertain about whether their savings will be enough.
As the Self Assessment deadline looms, highlighting the immediate financial pressures facing the self-employed, it’s clear that long-term saving too often becomes something to juggle, rather than something people feel confident about.
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