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Pension crisis fears as variety of self-employed women rockets | Personal Finance | Finance

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Fred Hicks, Senior Policy Adviser on the Association of Independent Professionals and the Self-Employed (IPSE), said: “We all know that more must be done to support the self-employed to save lots of adequately for retirement, with IPSE research suggesting that 14 percent of freelancers aren’t saving for later life in any way.

“This isn’t all the way down to a lack of expertise – seven in ten freelancers told us they’re concerned about their later life savings. But competing priorities, equivalent to constructing a short-term financial buffer, making essential one-off purchases, or paying down business debts could make long-term saving tougher.”

Employers have been obliged since 2012 to establish workplace pension schemes which employees are robotically enrolled into. Nonetheless, there is no such thing as a similar provision for people who find themselves self-employed.

The state pension currently provides just £9,628-a-year for individuals with a full history of creating National Insurance contributions, which suggests it will not be enough to offer lifestyle by itself.

The variety of self-employed men has fallen since 2010 but the overall variety of self-employed staff has increased by 250,000 to 4.3million, up by six percent.

Labour accused the Government of breaking a promise contained within the 2019 Conservative general election manifesto to launch a review into self-employment.

Deputy Leader Angela Rayner said staff within the so-called gig economy were sometimes classed as self-employed although they were effectively employees, allowing firms to avoid providing them with full legal rights.

She said: “Labour in power might be on the side of the self-employed. We’ll back the decent, hard-working strivers who go for self-employment because it really works for them. We’ll strengthen protections, ensuring the appropriate to a written contract, sick pay and timely payment by law.

“This Tory Government have broken their manifesto pledge to assist Britons in self-employment thrive.”

Business Minister Kevin Hollinrake said: “Enterprise and backing long run growth is considered one of the essential priorities of the Department.

“This deal with enterprise encompasses a lot of different areas, including boosting enterprise by making the UK the very best place to start out and grow a business, benefiting from Brexit to construct the UK’s competitive advantage, creating jobs and inspiring investment.”

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