Are the self-employed planning to retire?

So, you've decided to work for yourself. Great news! You've worked out what you're going to do, you've bought everything you need to make it happen, you've made your business plan and you've packed in your full-time job! The world is now your oyster!

If you're anything like me, jumping off the employed bandwagon and becoming your own boss was both exhilarating and terrifying all at the same time. What if it doesn't work? What if I fail? What happens if I don't make any money?! Those times probably now seem like a distant memory, and things are working out just fine. You've got the hang of it, you've mastered your bookkeeping - you're nailing it.

Well done you!

But, when was the last time you paid money into a private pension?

According to the Institute for Fiscal Studies, only 16% of self-employed workers are contributing to their pension.

16%!!! That is terrifying!

Did your business plan include working all the way to the grave? I highly doubt it. Mine certainly didn't.

One thing in this report that really surprised me was the fact it pointed out that those falling into the higher-income tax bracket were usually not contributing. Given the tax relief which pension contributions attract, it seems like people either don't know about the benefits of paying into their own pension, or that they've got a different plan for funding their retirement?

If you're one of the 84% of the self-employed people who are not saving for retirement, Perhaps you're planning to retire on the state pension? Did you know that the full state pension is only (currently) ￡175.20 per week?

Can you afford to have the retirement you deserve on ￡175.20 per week? If the sound of this is making you feel uncomfortable, perhaps it's time you take charge of your own future and do something about it before it's too late.