According to a new study, over three quarters of self-employed workers have not saved enough towards their pension for the time of life that they are at. The findings come as part of the most recent HL Savings and Resilience Barometer from Hargreaves Lansdown and Oxford Economics, which gauges the UK’s financial resilience every six months.
The barometer assesses financial resilience through five key pillars considered fundamental for balancing a household’s current and future demands and protecting against risks. These pillars are: controlling debts; protecting family; “saving for a rainy day”; planning for later in life; and investing.
Among the key findings of the most recent study was that much of the UK is struggling to save towards a pension. Figures showed that under 40 per cent of the UK’s working age households are currently on track to receive the current average pension income of £26,000.
Looking at self-employed workers, the study found that just 22.3 per cent of freelancers have saved enough towards a pension “for their time of life”. Perhaps surprisingly, the study also showed that a significant number of high income families are also not on track for pension savings for their time of life, while close to half don’t have enough life cover for their families.
Overall, the barometer found that the UK’s financial resilience has risen to 57.7 out of 100 over the past year. However, Hargreaves Lansdown points out that this figure is “strikingly uneven” and that the figure is expected to recede to 56.2 by the end of the year amid higher spending, interest rates and inflation.
The barometer showed that a third of the UK does not have savings that would cover a minimum of three months of essential expenditures, with the self-employed again said to be particularly vulnerable in this regard.
