Marvin OnumonuMillions of self-employed, gig economy and low-paid workers are missing out on a secure retirement compared to those in full-time employment, according to research from PensionBee.
Only 16% of people earning under £15,000 said they paid regularly into a personal pension.
Less than half (46%) of those earning £100,000 or more paid in regularly.
One in five (20%) earning £15,000 or less said they would rely only on the State Pension, putting them at greater risk of poverty later in life.
Everyday living costs were the main reason across almost every income bracket.
Young adults had the most trouble putting money aside, with nearly one in four (23%) 18 to 24-year-olds unable to save into a pension due to cost.
22% of people in that age group expected to rely on family in retirement, compared to just 3% of people over 65.
Confidence in retirement also rose with income.
Only 18% of those earning under £15,000 said they felt “very confident” about their financial future, compared to 39% of those earning £100,000 or more.
The report also found demand for change, with flexible contribution models the most popular idea, especially among people on lower incomes.
More than half of those earning £15,000 to £19,999 said being able to “contribute small, flexible amounts” would help them save into a pension.
Lisa Picardo, chief business officer UK at PensionBee, said: “While auto-enrolment has transformed retirement savings for millions of employees, millions of others remain excluded from the system, particularly the self-employed.
“These workers deserve the same chance to build a secure retirement, but face additional barriers when it comes to starting and sustaining contributions.
“For those outside the auto-enrolment net today, the important message is that it is still possible to take control.”
Picardo added: “By setting up a personal pension and making flexible contributions when they can afford to, the self-employed can begin their own savings journey and build confidence along the way.
“With the right tools and support, small, consistent steps can make a real difference to long-term retirement outcomes.”
