A national survey from IPSE, the Association of Independent Professionals and the Self Employed, has shown over half (54.4%) of freelancers are concerned about their finances post-retirement.
The results show that well over a third (37.3%) of freelancers are unable to contribute towards a pension fund and that one in ten are unsure of how to save for retirement (9.1%).
IPSE has previously welcomed the Government’s review into self-employment which will look into the issues surrounding how people who work for themselves save for their retirement. IPSE is calling for the review to look at flexible pension solutions for the self-employed.
Ways the self-employed are saving for the future include:
• 63.2% through a pension fund
• 33.3% through property
• 28.9% through stocks and shares
Commenting on the survey, Chris Bryce IPSE Chief Executive said:
“This survey shows the difficulties the self-employed face when planning for their future. We know this isn’t easy, and those working for themselves have tough decisions to make about their pensions and future financial situation.
“The nature of freelancing means you can’t always be on assignment and be able to set aside a regular amount for your future. You don’t have an employer contributing to your pension, so saving isn’t as straightforward. This is why we need innovative solutions to help the self-employed feel more financially secure over their future.
“We recently introduced IPSE Futures, which ensures our members have greater flexibility and more control over their savings. We now urge the Government to work with NEST to develop a flexible pension solution available for all self-employed, allowing individuals to withdraw the last two years of contributions without penalty.
“With the economy moving in the right direction after a difficult few years, it is important that the self-employed feel financially safe if they are to continue to lead the way towards a strong and flexible economy. Therefore we urge the Government to act sooner rather than later.”