A worrying two-thirds of self-employed people over 50 are not saving adequately for retirement, a new survey has claimed.
A new 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. Even more alarming is the suggestion that 38% are not saving at all.
Self-employed people are saving far less than their employed counterparts, the research also 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.
“The position of the self-employed is a particular concern,” said Ian Naismith, head of pensions market development at Scottish Widows.
“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.
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