The Self-employment Boom Amongst Women

Posted by siteadmin on Monday 1st of May 2017.

There has been a surge in self-employed women workers in the UK over recent years, according to figures from the Office for National Statistics.

Women account for just under a third of all self-employed, and they have made up over half (53%) of the increase in self-employment since 2008. Part-time self-employment has also grown rapidly amongst women, many of whom choose to fit work around childcare responsibilities or caring for the needs of elderly parents.

However, just one in eight self-employed women contribute to a personal pension plan, meaning that many could find themselves struggling financially in retirement (1).

Getting the pension saving habit

The government is said to be considering ways of extending auto-enrolment to the self-employed, but at present it’s up to the individual to put their own plans in place.

If you’re self-employed, saving into a pension can be a more difficult habit to develop than it is for those in employment. Irregular income patterns can make regular saving difficult.

However, there are plans available that can give you the flexibility you need, and the good news is that your contributions are topped up by income tax relief from HM Revenue & Customs.

How much should you aim to put aside to ensure you build up an adequate pension? The simple answer is probably as much as you can reasonably afford. If you were in an employer scheme, your employer might typically contribute 4% and you might be contributing a further 3% yourself.

So, it makes sense to discuss with your financial adviser the level of contributions you can make and the likely returns they would produce for you.

If you’re making plans for your retirement and would like some professional advice, then please get in touch.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

(1) Prudential, Self-employment booms among women – but at what cost to their retirement plans? 2016