Decrease in pension contributions correlates with significant increase in number of self-employed individuals
02 October 2019
The Telegraph has reported that a sharp increase in the number of people who are classed as self-employed has, in turn, prompted a decrease in the number of pension contributions that are being made in the UK.
Legislation surrounding auto-enrolment and the requirement for an employer to make pension contributions on behalf of their employees and for the employee themselves to contribute, obviously does not apply to those who work for themselves. Concerning figures highlight that self-employed people are not saving into personal pensions and therefore are not planning for their retirement. Of further concern is that these individuals are not benefitting from the tax relief associated with investing into a pension pot, preferring to invest back into their businesses in the short term.
Figures show that, in 2001, 3.3 million people were classed as being self-employed, which had rocketed to an impressive 5 million by the time figures were released last year. The fact that, the number of people classed as self-employed has grown significantly, yet there are lower figures of pension contributions being made amongst the self-employed indicates that there is a worrying trend in which people who work for themselves are not saving for their futures.
Read the full story from The Telegraph.
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