Policies for increasing long-term saving of the self-employed
This report is sponsored by Old Mutual Wealth and looks at recent trends in self-employment to consider alternative policy options for increasing the long-term savings level of the self-employed, with the intention that the output feeds into the automatic enrolment review.
In recent years, there has been a significant increase in the number of individuals in the labour market classified as self-employed, particularly since the 2008 Global Financial Crisis. There is also evidence that the nature of self-employment is changing over time, with some jobs which historically have been undertaken by employees now becoming self-employed. However, this increase in self-employment has been accompanied by a decline in the proportion of this group who are contributing to pensions.
This report constructs a picture of the self-employed, their characteristics and savings levels based upon quantitative analysis of multiple datasets. Three different policy alternatives which could meet the various needs of the self-employed have been explored, along with the potential impact each could have:
- Defaulting in: an automatic enrolment style system for the self-employed;
- Maintaining workplace pensions: transition from workplace pensions to individual/personal pensions;
- Alternative products: engaging the self-employed with alternative products for long-term saving, such as Lifetime ISAs.
To download the report, please click here.
Keywords: self-employed, self-employment, Old Mutual Wealth, defaulting in, automatic enrolment review