Aviva research reveals ‘worrying gap’ in self-employed retirement planning

New research from Aviva reveals a ‘worrying gap’ in retirement planning among the UK’s self-employed, freelancers and digital nomads.

According to the study, around a third (34 per cent) of digital nomads (those who use technology to work remotely while travelling and living in various locations) are actively saving into a pension or retirement plan.  The research revealed a similar picture for the self-employed and freelancers, with just 38 per cent and 40 per cent, respectively, saving for retirement.

The study, of 500 self-employed and freelance workers in the UK, found that nearly a third (31 per cent) of digital nomads intend to start saving soon. A similar proportion of this cohort (30 per cent) admitted that they are not currently doing anything to save for retirement.

Around a quarter (23 per cent) of self-employed people and 18 per cent of freelancers are planning to start saving soon, but around a third of both groups are not taking any steps to do prepare for retirement at the moment.

Awareness of personal-pension options was found to be limited. Just 25 per cent of digital nomads, 24 per cent of the self-employed and 22 per cent of freelancers know about self-invested personal pensions (SIPPs) and stakeholder pensions. 

The study also found that 81 per cent of digital nomads plan to continue to travel and work remotely for the long term. Nearly half said they intended to do so indefinitely. In the wider self-employed and freelance community, only around half – 55 per cent and 50 per cent respectively – feel confident and secure about their future.

Alistair McQueen, head of savings and retirement at Aviva said, “This research highlights a clear gap in retirement planning for people who are self-employed and freelance. Without auto enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.

“The good news is that small, regular steps – like opening a personal pension and setting an affordable monthly contribution – can make a big difference.” 

Pensions for the self-employed: what you need to know - Aviva