Have you started saving for your retirement?
Seems way off right? You’ve got plenty of time to save! Well, recent warnings have been issued for self-employed workers emphasising the need for them to start saving for their retirement.
According to the Office for National Statistics, nearly half of self-employed workers aged between 35 and 54 have no pension savings. None at all! In contrast to this, only 16% of employed workers in this age group are in the same situation.
But surely older self-employed workers have more savings right? Well, actually, statistics show that this age bracket isn’t much better off either. In fact, 30% of self-employed workers aged 55 and older don’t have any pension savings!
To make matters worse, more and more people are becoming self-employed each year as well. Just last year alone, the figure rose to 4.8 million self-employed workers in the UK. This accounts for just over 15% of labour in the market!
With the government not looking likely to give any support though, this could spell disaster for the self-employed tradesmen who aren’t prepping for their elderly years. Whilst the government are in talks with extending auto-enrolment pensions to those who fall between the traditional definitions of employed and self-employed, this won’t do much to help those who are solely working for themselves.
But, with an epidemic of late payments, is there any surprise that self-employed workers aren’t saving for their retirement? In fact, it was found that small and medium sized businesses are actually owed billions in late payments! Take a look at the full report on this here.
It’s not all bad news though. Self-employed workers are wealthy in many other respects! For example, statistics found that self-employed workers aged over 55 were much more likely to have their wealth contained in property. And, in fact, they are twice as likely to have property wealth of over £500,000 in comparison to employed workers.
So what can you do about this?
Well, it might be a good idea to start looking into setting up a personal pension for yourself. Or, if this isn’t for you, there are many other saving options including ISA’s which allow you to make regular contributions.
So what do you think of this? Are you already planning for your retirement? Let us know in the comments below.