Default pension savings could help close self-employed retirement gap – Nest Insight

Early feedback was positive, with participants valuing transparency, control, and the ability to pause or cancel at any time.

The study also looked at a hybrid or sidecar approach, which mixed pension saving with an accessible savings pot for those with uneven incomes. 

Having a liquid savings buffer made people feel more in control and reassured.

Overall, most self-employed people saw the autosave model in a positive light. 

More than three in four said they wanted an opt-out method for pension saving or did not mind it.

Graeme Bold, managing director, pensions and retirement at Scottish Widows (part of Lloyds Banking Group), said: “The self-employed pensions gap is critical – more than half of self-employed individuals are on track for poverty in retirement, compared to just 25% of full-time workers. 

“Self-employed workers need flexibility, and our study allowed us to test hybrid, flexible savings models tailored to their unique needs. 

“The results are a significant leap forward, enhancing the retirement outlook for the UK’s 4.4 million self-employed.”

Bold added: “Government and industry need to work together to create a blueprint for auto-enrolment that truly benefits them.”

Will Sandbrook, managing director at Nest Insight, said: “This is an important step towards closing the self-employment savings gap. 

“While many have discussed potential solutions, we now have evidence that a default savings journey has real promise. We look forward to trialling and fine-tuning its potential at scale.”