Most self-employed workers and freelancers in the UK are failing to put money aside for retirement, raising concerns about long-term financial security for a growing part of the workforce, according to new research.
A study by Aviva found that just 38 per cent of self-employed people and 40 per cent of freelancers are actively saving into a pension or retirement plan. Among digital nomads — workers who use technology to work remotely while living and travelling in different locations, the figure falls to just 34 per cent.
The findings suggest that the majority of people working outside traditional employment structures are not building dedicated retirement savings, potentially leaving themselves financially exposed later in life.
The research, based on a survey of 500 self-employed and freelance workers in the UK, also revealed widespread uncertainty about pension products. Fewer than one in four respondents said they understood the retirement savings options available to them, with only 24 per cent of self-employed workers and 22 per cent of freelancers aware of products such as self-invested personal pensions (SIPPs) or stakeholder pensions. Awareness among digital nomads was only marginally higher at 25 per cent.
While some respondents plan to take action, progress remains slow. Nearly a third of digital nomads said they intend to start saving for retirement soon, but 30 per cent admitted they are currently doing nothing to prepare. Among the wider self-employed and freelance community, 23 per cent and 18 per cent respectively said they plan to begin saving, yet around a third in each group are taking no specific steps at all.
Despite these gaps, flexible working continues to appeal strongly. More than four in five digital nomads said they plan to continue this way of working long-term, with almost half expecting to do so indefinitely. However, confidence about future finances is mixed: just over half of self-employed workers said they felt secure about their long-term financial position, compared with 50 per cent of freelancers.
Alistair McQueen, head of savings and retirement at Aviva, said the research highlighted a structural weakness in retirement planning for people outside PAYE employment.
“This research highlights a clear gap in retirement planning for people who are self-employed and freelance,” he said. “Without auto-enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.”
McQueen added that even modest action could make a significant difference. “Small, regular steps, such as opening a personal pension and setting an affordable monthly contribution, can have a big impact over time. Flexible ways of working require flexible ways of saving, and taking action today can help build the financial security needed tomorrow.”
With self-employment, freelancing and remote working continuing to expand across the UK economy, Aviva warned that improving awareness and engagement around retirement saving will be critical to avoiding a future wave of financial insecurity among independent workers.
