Pensions  

Majority of self-employed are not saving into pensions

But he said there was still a risk they will not be saving enough.

He added: “Most of my clients will top up their contribution at tax year/business year end. This helps keep them on track to achieve their desired retirement fund. 

“Goal setting is vital here and gives them something to work towards in the long term. It brings to life the importance of saving more and starting sooner. This is the benefit a financial adviser brings.

“Due to the large number of self-employed who don’t contribute, compelling them to do so sooner rather than later has to be a good starting point.”

Meanwhile Darren Cooke, chartered financial planner at Red Circle Financial Planning, is supportive of the idea of an auto enrolment system for the self-employed although he recognised this is a lot harder to achieve than in the workplace.

Mr Cooke said: “Auto-enrolment seems to have been a great success in the workplace for employed people and that needs to be replicated with the self-employed.

“I think there is a combination of factors that prevent this happening but uncertainty of income is a big one. Many self-employed are concerned about putting money into a pension they can't get at for years and years when they may need that money next month or next year if their work situation changes.

“Wider awareness that they can save a little bit and often into a pension and systems to allow them to do that may help overcome that so they literally can add a couple of quid every day by not buying a coffee but putting that money into their pension instead."

He added: “Semi-compulsory savings like a workplace pension would be better but much harder to introduce for the self-employed.”

amy.austin@ft.com