The Self-employed are failing to make sufficient pension provision but our financial advisers can help. Figures from the Office of National Statistics show that just 420,000 out of the 4.6 million self-employed people in the UK were paying into a pension in 2013/2014.
That’s less than one in 10, compared with one in three, compared with one in three in 2001/02. According to calculations by Prudential, total pension contributions made by self-employed have fallen by 35 per cent over that period.
The statistics present a stark contrast with the high pension scheme take-up among employees since auto-enrolment was introduced in 2012. National Audit Office figures show that 58,000 employers have enrolled 5.4 million workers onto auto-enrolment, and that opt-out rates are lower than expected at between 8 and 14 per cent.
Auto-enrolment works because it involves default membership of private pension scheme, so people have to make an effort to opt out of it and because members receive a contribution from their employer; neither of these advantages is on offer to the self-employed.
In the absence of an employer’s help, self-employed workers may benefit from some form of government intervention.
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.