Govt to publish paper on self-employed savings

Govt to publish paper on self-employed savings

The Department for Work and Pensions (DWP) will launch a paper this winter on self-employed savings, the Budget 2018 has revealed.

The consultation will contain the government’s approach to increasing pension participation and savings persistency among the self-employed, it said,

This follows the 2017 review of auto-enrolment and will focus on expanding evidence through a programme of targeted interventions and partnerships, the government added.

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DWP had announced it would work on improving pension participation and retirement outcomes among self-employed people by "testing a number of different approaches […] from 2018" in its auto-enrolment review in December.

This was after the government was accused of breaking one of its manifesto commitments – to include the self-employed in the auto-enrolment reforms.

According to a recent report from the Association of Independent Professionals and the Self-Employed (Ipse), only 31 per cent of the UK’s 4.8 million-strong self-employed population are paying into a pension.

Data from the DWP showed the number of self-employed workers saving into a pension through auto-enrolment had dropped from 19 per cent in 2012/13 to 16 per cent in 2016/17.

Ian Browne, pension expert for Quilter, said: "The self-employed are also back on the pensions policy agenda, with a government paper promised.

"Nest is currently undergoing a trial of a savings side-car, which may be a potential solution for self-employed saving dilemma, allowing self-employed savers to have a liquid savings pot that attaches to their pension."