BLOG: The Pension Gap Facing the Self-Employed
By Lindsey Reed, Money Management Trainer at TISA
It’s 8:30am. Sarah, a self-employed graphic designer, switches on her laptop with a strong coffee in hand. Like millions of freelancers across the UK, she thrives on flexibility, creativity, and being her own boss.
But when it comes to pensions, Sarah is like most self-employed workers: unprotected.
Unlike employees, who are automatically enrolled into a workplace pension (with their employer contributing too), the self-employed are on their own. And the statistics paint a worrying picture.
- Only 18% of the UK’s 4.4 million self-employed are saving into a pension (Nest Insight, 2022).
- The Social Market Foundation found just 22% actively contribute to a private pension.
- By contrast, 88% of eligible employees are saving through workplace pensions (PensionBee, 2022).
Sarah always assumed the State Pension would be enough. But she’s never checked the small print: to qualify for the full new State Pension (£230.25 a week in 2025), you need 35 years of full National Insurance contributions. With gaps in her record from years of part-time freelancing, Sarah may not even get the full amount. With fewer than 10 qualifying years, she’d get nothing at all (gov.uk).
This isn’t just Sarah’s story. It’s the story of many self-employed people in the UK. Retirement isn’t front of mind when juggling invoices, chasing clients, and covering rising costs. But without action, the consequences in later life are stark; a retirement filled with financial anxiety rather than security.
Changing the story
There is good news. Small, regular contributions can make a huge difference. Even £50 a month invested into a pension early could grow into tens of thousands over a career, thanks to compounding. But the real challenge is awareness and action. Many, like Sarah, don’t know what they’re missing.
That’s why at TISA, we’ve developed a Train the Trainer programme. We believe the best way to reach the self-employed is through people they already trust – perhaps people like you; business advisors, community advocates, accountants, and financial companies that care.
Our programme equips these trainers with the tools, knowledge, and confidence to guide self-employed workers like Sarah. It’s not about selling products. It’s about providing clear, practical pension education so people can make informed choices for their future.
Pensions Awareness Week – a call to action
This Pensions Awareness Week, let’s go beyond raising awareness. Let’s empower change.
If you work with self-employed people, freelancers, or small business owners, you have a role to play in rewriting the retirement story. Join us in helping people like Sarah secure not just a pension, but peace of mind for the future.
Learn more about our Train the Trainer programme here: https://www.tisa.uk.com/the-essentials-of-money-management/