43% of the self-employed fail to pay into pension plan
THE surge in self-employment is adding to the pensions timebomb, with 43% of people who work for themselves failing to pay into a plan, a poll found.
There are 4.78 million self-employed people, 15.1% of the workforce.
But in a poll, 33% said they could not afford to put any cash away and would rely solely on the state pension of £8,545 a year.
The Prudential poll found 28% of self-employed people planned to carry on working, hoping their business would provide an income in old age. Ex-Pensions Minister Baroness Ros Altmann said many did not realise how good pension schemes were. She said: “The generous incentives and tax-free investment growth are valuable, but not always appreciated.” The Prudential said: “Saving for retirement is tough for the self-employed.”