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18 December 2018

Self-employed savings trials hold promise for the future

Responding to the launch of the Government’s ‘Enabling retirement savings for the self-employed’ reportFederation of Small Businesses (FSB) National Chairman Mike Cherry, said: 

“As things stand, thousands of sole traders will struggle to retire at a sensible age because they simply aren’t saving enough. Fewer than one in three self-employed people save into a private pension. That compares to more than three quarters of employees. Unless we get the self-employed saving more, we risk a real financial calamity a few years down the line.

“It’s encouraging to see the Government taking this issue seriously – trialling different ways to address this challenge is the right way forward. Today’s report takes on board FSB’s recommendations for using the self-assessment process as an opportunity to nudge sole traders to put more away for the future. It also stresses the importance of pensions dashboards – another crucial intervention that we’ll continue campaigning for.  

“The self-employed hugely value freedom: an auto-enrolment model is not right for them. The key here is behaviour change. We look forward to working with DWP to see how we can get more sole traders thinking about retirement. Saving for the future shouldn’t be an afterthought.”