Retirement news
Self-employed should start saving for pension
13 February, 2007
Self-employed people are being warned to think carefully about their retirement after it was revealed that they could receive a smaller state pension
The comments come from the Pensions Policy Institute (PPI) which argues that a relatively large amount of people who work for themselves were not saving.
It also said that the pension system means they often start off with a lower state pension than others on which to build their private provision.
Chris Curry, research director at the PPI said that he was not surprised that many self employed people were not saving.
He added: "Their saving isn't helped by the way the state pension system works because they currently don't qualify for any state second pension.
"It means that they are likely to receive a much smaller state pension than someone who is employed."
His comments come after recent research by Scottish Widows revealed that only a third of self-employed people are saving enough for their retirement.
According to the figures more than half of self employed people are aged over 50 but self employed people are only half as likely as public sector workers to have any savings at all.
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