MILLIONS of self-employed workers risk poverty in retirement because only one in five now has a personal pension. The ‘timebomb’ was revealed in official figures showing that even though their ranks have swelled by 700,000 during the economic crisis, the number of self-employed with a pension has plummeted. The Office for National Statistics says 22 per cent of self-employed men had a personal pension last year compared with 37 per cent in 2006. The number of self-employed people who are saving for their retirement has plummeted according to new figures . The data did not include women, who are even less likely than men to have a personal pension. Research by insurance firm Prudential found that because of low wage growth more than half said they could not afford contributions. ‘This is a very risky approach which could leave them facing a significant drop in their standard of living as they enter retirement,’ it said. Research showed that because of a low wage growth, more than half of people said they could not afford contributions . However, the ONS found a marked rise in the number of employees in workplace pensions. Almost half are now members of a scheme, with take-up boosted by the Government’s new auto-enrolment scheme. Pensions guru Ros Altmann said: ‘The big attraction of workplace pension is that you get an employer contribution. Therefore, the attraction of pensions for self-employed is far lower.’ Tom McPhail, pensions expert at Hargreaves Lansdown, said the demands of running their own business meant it was ‘hardly surprising that the self-employed haven’t seen pensions as a high priority .
ONS figures reveal only 22 per cent of self-employed men have a pension .
This compares to 37 per cent with a personal pension seven years ago .
More than half said that they could not afford contributions due to low wages .
MILLIONS of self-employed workers risk poverty in retirement because only one in five now has a personal pension. The ‘timebomb’ was revealed in official figures showing that even though their ranks have swelled by 700,000 during the economic crisis, the number of self-employed with a pension has plummeted. The Office for National Statistics says 22 per cent of self-employed men had a personal pension last year compared with 37 per cent in 2006. The number of self-employed people who are saving for their retirement has plummeted according to new figures . The data did not include women, who are even less likely than men to have a personal pension. Research by insurance firm Prudential found that because of low wage growth more than half said they could not afford contributions. ‘This is a very risky approach which could leave them facing a significant drop in their standard of living as they enter retirement,’ it said. Research showed that because of a low wage growth, more than half of people said they could not afford contributions . However, the ONS found a marked rise in the number of employees in workplace pensions. Almost half are now members of a scheme, with take-up boosted by the Government’s new auto-enrolment scheme. Pensions guru Ros Altmann said: ‘The big attraction of workplace pension is that you get an employer contribution. Therefore, the attraction of pensions for self-employed is far lower.’ Tom McPhail, pensions expert at Hargreaves Lansdown, said the demands of running their own business meant it was ‘hardly surprising that the self-employed haven’t seen pensions as a high priority .
Statistics says 22 per cent of self-employed men men to have a personal pension. Research by low wage growth more than half said they could not afford contributions. ‘This is a very risky of people said they could not afford