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Self-employed not saving adequately

Two-thirds of self-employed people over 50 are not saving adequately for retirement, a new survey has claimed. The study by Scottish Widows has revealed that six out of ten self-employed people are older than 50, however only 36% are saving enough for a comfortable retirement. The results also indicate that 38% are not saving at all. Self-employed people are saving far less than their employed counterparts, the research revealed. The percentage of the entire population saving properly for retirement stands at 46%, but this increases to 59% for those working in the public sector.

Ian Naismith, head of pensions market development at Scottish Widows, said: “The position of the self-employed is a particular concern. “Losing out on employer contributions, including in the proposed personal accounts, means that it is imperative they have a savings plan in place for their retirement. “It is understandable that as people get older and have greater experience in their profession that they would want to opt for a more flexible lifestyle, but the financial implications of self-employment are still profound.”

The study also suggested that self-employed people expect to retire later in life with 23% believing they may not be able to retire until 70, compared to only 16% of employed people.

This was posted in Bdaily's Members' News section by Ruth Mitchell .