In 2012, the UK Government launched a minimum contribution pension scheme for employed workers, meaning that a proportion of their monthly salary would be automatically withdrawn and saved for them to access at retirement age.

The scheme was well-received, with 10 million workers being automatically opted in and only 9% of those enrolled choosing to opt-out. However, this automatic enrolment didn’t account for the self-employed, who make up an estimated 15% of the UK workforce.

According to Guy Opperman, Minister for Pensions and Financial Inclusion, “Only around one in seven (14%) self-employed people were saving into a pension in 2016 to 2017.” And so they have today unveiled plans to now target the self-employed for pension savings.

“Our trials are designed to make sure that this diverse group of people gets help to plan ahead for greater financial security and the lifestyle they aspire to in later life,” said Opperman. “We want to see effective, long-lasting solutions that boost the future prospects of millions of hard-working self-employed people, and will work with the financial services sector, professional trade bodies, unions and others to achieve that.”

Incomes, assets and employment experiences can vary for the self-employed but the Department for Pensions and Financial Inclusions has spent the past 12 months working closely with a variety of organisations to determine how best to support and encourage short and longterm savings for them.

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