Self-employed 'facing pension problems'

Date: 22nd March 2010

Self-employed people are not saving as much in their pension schemes as employed workers, according to one financial specialist.

A new report from Standard Life has revealed that self-employed workers could be putting themselves at risk by prioritising their business activities over long-term financial planning.

According to the study, the average self-employed person aged between 35 and 44 years has a pension pot worth £24,500, with some saving as little as £3,500.

By way of contrast, the average pension pot for employed workers of the same age is currently £73,000.

Andrew Tully, senior pensions policy manager of Standard Life, said: "The UK has a long-term savings gap which is magnified when you compare the self-employed and employed.

"While it is entirely understandable for the self-employed to focus on making their business a success, they also need to be aware of the implications of their employment status when planning their long-term finances."