While there are other priorities when starting your own business, there might be merit in those who leave to become self-employed agreeing to a ‘trigger’ which will restart contributions after a period of say 12 months, unless they choose to ‘opt out’ at that time.
We also have the Lifetime Isa. This has not proven particularly popular, and for most employees is far less suitable than a workplace pension with employer contribution. But it does offer a viable alternative to traditional pensions for the self-employed, and can be accessed early, albeit with an exit penalty.
Implications for advisers
The government has clearly identified that the self-employed population is diverse, with a wide range of different characteristics, needs and behaviours when it comes to saving for retirement.
But it remains committed to improving participation among this increasingly important sector of the workforce.
Of course, the more diverse and individualised the needs, the greater is the value in seeking individual professional advice.
We look forward to seeing the outcome of the trials. But in the meantime, there are huge advice opportunities.
Steven Cameron is pensions director at Aegon
