Freelance

Is There a Pensions Crisis Looming for the Self-employed?

by akesha / last updated January 4, 2019

self-employed pension crisis

As a freelancer there are many things you have to organise to keep your business afloat and oftentimes things can get missed. And with no auto-enrolment scheme for freelancers the NHF are predicting a self-employed pension crisis.

When it comes to pensions for the employed, many have benefitted from the auto-enrolment for private pensions schemes. Over 10 million workers enrolled and only 9% opted out.

Self-employed workers will have to rely on state pension upon retirement if they haven’t set up their own private account. This currently stands at 164.35 per week, depending on whether you have made full national insurance contributions.

This is bound to hit the hair and beauty industry hard, as over half of the workers are now registered as self-employed. Hilary Hall, NHF/NBF chief executive thinks there needs to be much stronger action taken for the self-employed.

“We have been calling for some form of pensions savings scheme, administered through their tax returns, which all self-employed people are opted into. They could opt out if they choose, for example if they’ve already made provision for their pension. While raising awareness of the need to save is important, concrete action is needed to make sure pensions are seen as a priority,” she said.

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