Pensions trap awaits

THE proportion of self-employed workers saving into a pension has plunged over the past 14 years.

Just one in ten of those who work for themselves is saving for retirement, compared to a third in 2001. The number of self-employed workers is at a record high of 4.6 million.

But Office for National Statistics figures show that just 420,000 of them contribute to a pension.

However, those self-employed who choose to squirrel away cash into a retirement nest-egg are putting aside more. The average annual contribution increased from £2,200 in 2001 to £3,800 last year, according to HM Revenue and Customs.