More than half of self-employed want govt pension saving help

More than half (54%) of self-employed workers would welcome further government support in pensions saving, according to research conducted by Prudential.

Of the 54 per cent, 27% would back the expansion of auto-enrolment to cover the self-employed and an additional 27% would support compulsory pension saving.

Prudential retirement expert, Vince Smith-Hughes said: “It is clear that the self-employed want help in saving for retirement and that the state pension alone may not be enough for a comfortable retirement”.

However, not all self-employed workers are concerned. Nearly one in five (18%) of those surveyed do not believe pensions apply to them.

This goes some way to explaining why Prudential’s study found that 43% of the self-employed, which is equal to over two million workers, have no form of pension savings.

Furthermore, 28% said that they will be reliant on the state pension as their main source of income in retirement.

Smith-Hughes continued: “We believe it is important that the government works with the self-employed, and the pensions industry, to ascertain the most suitable option and put appropriate rules in place as soon as practicable.”

Around 15% admitted that one of the reasons that put them off saving for retirement is that they are worried that they cannot immediately access their funds if out of work.

A further 20% of those surveyed said that they find pensions rules very confusing.

The Pensions Advisory Service chief executive, Michelle Cracknell, believed that there is a “clear disconnect between the self-employed and pensions”:

“Currently, they are not getting the help that they need. The self-employed are a diverse group who have many different needs and desires. We must find new ways of getting the key message of the importance of retirement savings across to them and importantly new mediums to deliver those messages.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.