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Self-employed 'financially insecure but happy'

Opting to become self-employed can mean swapping financial security in retirement for quality of life now, new research suggests.

Scottish Widows warns that many self-employed people are facing a bleak retirement, but the bank's research did find that they enjoy greater career satisfaction in the present.

Many are "under saving significantly" compared to their employed counterparts, with nearly two in five making no savings or pension contributions.

Nevertheless, while half of employed people would gladly stop work tomorrow, only 36 per cent of self-employed people were willing to stop now and on average they were prepared to work until 67 – two years longer than usual.

Ian Naismith, head of pensions market development at Scottish Widows, said: "The position of the self-employed is a particular concern.

Losing out on employer contributions, including in the proposed personal accounts, means that it is imperative they have a savings plan in place for their retirement."

However, it could be the case that many people opt to start-up their own business after achieving financial security elsewhere, as nearly three in five self-employed people are over 50 years old.

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09/02/2007 17:12:21

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