Self-employed workers lack confidence in their retirement savings being able to support them in later life, despite the vast majority contributing to a pension, research from PensionBee has found.

Its study showed that 81% of self-employed workers held pension savings and 72% had contributed within the past year.

PensionBee said these levels of engagement challenged the idea that the self-employed were opting out of retirement saving altogether.

However, this engagement was not translating into confidence, with just 22% saying they felt very confident their pension would support them in later life, while 27% were not confident at all.

The research highlighted that short-term financial pressures were crowding out long-term planning.

Almost half (47%) pointed to income-related barriers as their main obstacle to pension saving, with 31% citing unpredictable earnings and 20% saying they could not afford regular contributions.

Of those already saving into a pension, 16% said they were struggling to maintain contributions when their earnings fluctuated, resulting in sporadic rather than consistent saving patterns.

The study found that the issue was not a lack of trust or willingness to engage, with just 2% saying they were distrustful of pensions.

However, accessibility and practicality remained key challenges, as 20% of self-employed pension holders found pensions confusing or hard to manage, while 13% felt products were not designed around self-employed working patterns.

PensionBee said the research underscored the need for pension solutions that better reflect fluctuating incomes, and offer greater clarity and confidence for those outside of traditional employment.

“These findings show that the self-employed are trying to do the right thing but are being held back by income volatility and a system that isn’t built around how they work,” said PensionBee chief business officer UK, Lisa Picardo.

“Many are engaging with their pensions when they can, yet still lack confidence and feel uncertain about whether their savings will be enough.

“As the self-assessment deadline looms, highlighting the immediate financial pressures facing the self-employed, it’s clear that long-term saving too often becomes something to juggle, rather than something people feel confident about.”

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