Pensions Debt 'Risked By The Self-Employed'

Although most of us work for other people there is a large number of the population who work for themselves. There are many reasons for this, perhaps they find it more fulfilling doing what they love on their own terms or perhaps they have always wanted the freedom to work by themselves. Whatever the reason there is no doubt it is a hard choice to be self-employed.

Many find it a struggle doing the books and running the business and it can be worse when there are employees involved as well. So many look forward to the day when they can finally retire and put their feet up. However, it seems that many who work for themselves are not fully prepared for that day.

People in the UK who are self-employed are risking debt by not putting away enough for when they retire, a pensions authority has claimed.

As well as those who work for themselves, people who own small businesses may also see problems in the future if they do not consider what they are setting aside, according to the Pensions Advisory Service.

It may be that this is down to consumers being confused as to the investment options they have available to them, it added.

"Surveys that have been done in the past have shown that the self-employed are one of the more significant groups that are under-providing for retirement," said a technical manager.

You can start contributing to a pension scheme at any time during your working life, obviously however, it is better to start earlier rather than later. There are many different types of scheme on the market and it is worth taking the time to talk to an independent financial advisor, if you are self-employed, to make sure you pick the right plan for your individual circumstances.

If you would like to know more about pensions why not ask AnswerBank Business and Finance.