Steven Cameron, Regulatory Strategy Director, Aegon UK commented: “Self-employed workers make up a growing percentage of the UK’s population and have a specific set of pension needs. The recommendation that they should be granted early access to their pension, below the current minimum age of 55, is a double edged sword. While it may reduce concerns over money being locked away, it could also prove a little too tempting for some.
“Self-employed individuals reaching state pension after April this year are in for a boost as they become entitled to the new state pension of £155 a week if they have sufficient National Insurance contributions, but this won’t come close to paying for a comfortable retirement.
“It’s disappointing the report rejects a self-employed version of automatic enrolment. This has proved successful in getting millions of payroll employees contributing to their pension and there are ways this could be extended for those whose employment is made up of a series of contracts.
“Many with their own businesses, understandably, prefer to invest in their company, leaving pension savings until later in life. However, this could become more difficult if the Budget rumours are correct and Chancellor reduces the maximum amount an individual can pay into their pension in any year.”
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