New findings by Community indicate the majority of self-employed members do not pay into pension and feel unprepared for retirement. Community is currently consulting with our self-employed members to help better prepare them for retirement, especially those who are low paid and currently do not have adequate provision.
In December 2018, the Department for Work and Pensions unveiled trials looking into how to encourage the self-employed to save for their retirement. Community is now working with the DWP looking at attitudes to pension saving, trials to encourage long term savings trials, and auto-enrolment into pension schemes for the self-employed. Community also recently submitted a response to a Government consultation on ‘delivering collective defined contribution pension schemes’ in relation to the self-employed.
Tom Blenkinsop, Operations Director for Community, said:
“For the self-employed, there is no-one to choose a pension scheme for you, no employer contributions and irregular or low incomes which can make saving for the future extremely challenging.
“There are approximately 4.8 million people in the UK who are self-employed, and this number is increasing, yet only 14% of the self-employed were saving into a pension in 2016/17.
“We’ve found 55% of our self-employed members do not have adequate savings provision because they simply cannot afford to put money aside. For those members who are saving for retirement, two thirds do not believe their pension will provide an income they can live on during retirement.
“It’s vital we get this right to make saving for retirement more accessible, flexible and attractive to the self-employed. Everyone deserves security and dignity in retirement, and that’s why we’re working with the DWP to explore solutions to saving for the self-employed.”
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