‘Work until you drop’ – self-employed can NEVER retire as they have no pension savings

More than 1.3 million people will pay a high price for being their own bosses as their failure to build up their retirement savings could force them to carry on working for as long as they possibly can, a report claims. Too many will only have State Pension to fall back on, but that is one of the worst in the developed world.

The pandemic has been particularly hard on the self-employed, as more than half of those who work for themselves lost income as a result.

That is almost double the national average, according to the Scottish Widows Retirement Report.

The Government launched the Self-Employment Income Support Scheme (SEISS) to help self-employed workers, but many fell through the gaps as successful applicants needed to have worked for themselves for at least two years.

Up to three million self-employed workers got got no Covid-19 financial support whatsoever as a result, according to campaigning group Excluded UK.

Incredibly, one in seven self-employed workers went more than six months without receiving any income at all.

One in three are saving nothing at all for their future, while a further third are saving less than they need to retire in comfort.

Pete Glancy, head of policy at Scottish Widows, said too many self-employed never get started with their savings. “Covid fallout has left many struggling to make ends meet, let alone save for their future.”

More than a quarter of self-employed workers are now considering returning to employed work because of the challenges they face, Glancy said.

READ MORE: Rishi Sunak’s 55% ‘horror’ Budget pension tax attack will hit YOU

JT was ineligible for SEISS, being a company director, and also could not benefit from furlough or council Covid support schemes. “I took out a loan under the Bounce Back Loan Scheme, but now I’m paying this back too.”

With daily life and financial struggle it is too easy for the self-employed to put pension savings on the back burner.

The self-employed cannot access the workplace auto-enrolment scheme, which has granted company pensions to more than 10 million employees since 2012.

They must save under their own steam instead but too many are failing to put away any money at all.

Alan Thomas, UK chief executive at Simply Business, said fewer have been hit harder by the pandemic than the self-employed, with many livelihoods on the line.

He called on Chancellor Rishi Sunak to offer support. “For the UK to recover from the effects of the pandemic, we need small businesses to bounce back.”

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More