More than 50% of contractors are still uncertain about whether they will fund their retirement, according to a new survey published by the Association of Independent Professionals and the Self-Employed (IPSE).
IPSE’s new survey asked respondents how they are planning for life after work. 54.4% of flexible workers said they were unsure about their pension, while more than one-third (37.3%) revealed that they are currently unable to contribute to a pension fund.
These figures are concerning, as contractors should be able to look forward to a comfortable retirement regardless of their employment status. 9.1% said they still didn’t know how to save money for their retirement.
Pension funds remain the most popular form of saving for contractors, with almost two-thirds using the traditional approach; meanwhile, 33.3% are investing their money in property to create income for later life and 28.9% have decided to buy stocks and shares.
IPSE chief executive Chris Bryce said: “This survey shows the difficulties the self-employed face when planning for their future. We know this isn’t easy, and those working for themselves have tough decisions to make about their pensions and future financial situation.”
He continued: “The nature of freelancing means you can’t always be on assignment and be able to set aside a regular amount for your future. You don’t have an employer contributing to your pension, so saving isn’t as straightforward.”
Mr Bryce added that new, innovative solutions could help the flexible workforce to secure their future and urged the government to begin working with industry bodies to ensure flexible and competitive pensions are available to the self-employed.