Run your own business? Don't be among the 41% of self-employed Britons without a pension
A survey of 5,078 people by UK investment platform CMC Invest has found that more than four in 10 self-employed workers do not have a pension.
London, UK – Wednesday 24th of April: A worryingly high proportion of self-employed people – 41% – are risking an uncertain retirement because they aren’t paying into a personal pension, new data from investment services provider CMC Invest has revealed.
The survey of 5,078 people in the UK, of whom 343 (7%) identified as self-employed, found that many respondents were in the dark about their pension, with more than half (58%) of all those surveyed saying they weren’t aware of their pension fees.
While employers must offer their employees access to a workplace pension scheme by law, there are no similar requirements for self-employed people. In short, if you’re self-employed, it’s up to you to save for retirement. That’s why self-employed workers who neglect to set up a pension plan can easily find themselves financially vulnerable in later life - although they are still likely to be eligible for a state pension, assuming they’ve built up enough qualifying years of national insurance contributions.
For many self-employed people, the solution to this problem may be a Self-invested Personal Pension (SIPP). A SIPP is a self-managed pension that allows you to choose your own investments and enjoy tax-free benefits. However, the survey found that 44% of self-employed people weren’t even aware of SIPPs. Meanwhile, of the survey’s 282 homemakers and full-time parents, the lack of awareness was even greater, with 73% of this group saying they didn’t know about SIPPs.
The data also indicated that a vast number of people have multiple workplace pensions. Of the 3,592 respondents (71%) who said they had a pension, 40% admitted that they hadn’t consolidated their pension pots into one account.
As we change jobs more often nowadays, it’s easy to accumulate several workplace pensions over our working lives. But unless we consolidate these pension pots, it can be difficult to track how much we’re putting aside for later life. And, according to the Association of British Insurers, approximately 1.6 billion savers have “lost” pension pots worth £19.4bn in total.
David Dyke, head of CMC Invest, said: “The statistics, while not surprising, are concerning. A pension is there to provide you with an income in the future. Without a pension, as people approach the age they’d like to ease up on work, they’re likely to be left short.”
“With a SIPP it’s easy to start, stop and change pension contributions at any time, making it fit with the often-irregular income pattern of self-employed people,” added Dyke. “CMC Invest designed its newly launched SIPP with a flat, simple fee structure, meaning customers will always know what they’re paying. When you open a SIPP with us, you can easily transfer any existing pensions into the account, letting you consolidate all your pensions into one.”
To give everyone a head start, CMC Invest is making their new Premium plan free of charge for 12 months* (other standard charges apply), giving savers and investors access to a SIPP, Flexible Stocks & Shares ISA, General Investment Account (GIA), and more. All for £0 a month for 12 months*. Customers can also receive up to £1,000 cashback** when transferring a SIPP, ISA and/or GIA to CMC Invest.
*Premium plan 12-month free promotion T&Cs apply. For more information about the Premium plan offer, please visit https://www.cmcinvest.com/en-gb/plans.
**Transfer bonus T&Cs apply. Transfer bonus offer runs until 5 May 2024. For more information, please visit https://www.cmcinvest.com/en-gb/transfer.
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-ENDS-
About CMC Invest CMC Invest UK brings its global experience, trusted heritage, and disruptive culture to its customers – so that they can benefit from lower costs and greater long-term value in their investments.
The CMC Group was founded in 1989 in London, UK, giving it over three decades of financial markets experience. With offices in 16 countries, CMC serves clients around the world. The company is listed on the London Stock Exchange and is the second largest stockbroker in Australia, where it has won the prestigious Canstar award for Best Online Broker for 12 years in a row.
CMC Invest is not a pensions operator or administrator, nor does it provide investment advice. Individual investors should make their own decisions or seek independent financial advice.
Quai Investment Services Limited acts as a pensions operator and administrator and is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 922590. Registered in England No 09919243, VAT No 401610949. The Registered Office for Quai Investment Services Limited is Unit 16 Tesla Court, Innovation Way, Peterborough, PE2 6FL.
CMC Invest is a trading name of CMC Markets Investments Ltd, which is authorised and regulated by the Financial Conduct Authority, registration number: 948126. Registered in England and Wales. Company number: 12816952.
For more information, please visit https://www.cmcinvest.com/en-gb/
For further media information, please contact: press@cmcminvest.com