40% of self-employed say they will never retire
Forty per cent of self-employed business owners say they will never retire, a survey from Prudential has revealed.
The research found that 'eternal entrepreneurs' are shunning pension savings because they believe they will not retire. In fact, 46 per cent of those questioned said that they have no private pension savings in place to support them in retirement.
It seems that business is taking priority over pension savings for 27 per cent of self-employed business owners who have chosen to invest in their business instead of retirement.
Commenting on the survey, Stan Russell, retirement expert at Prudential said: "It's easy to see why many self-employed workers prioritise investing in their businesses over saving into pensions when times are tough. The pay-off is much more immediate and the consequences of not saving for retirement can often feel quite distant. But it is a risky approach that could leave many business owners in financial difficulty later in life."
Tough trading conditions have led to 27 per cent of entrepreneurs putting their pension contributions on hold, but just eight per cent have since restarted contributions. A disproportionately high number of self-employed participants are consequently reliant on the State Pension. Russell adds:
"A very high proportion of self-employed workers say they don't have any plans to retire. In many cases, working beyond the normal age of retirement is an excellent way of securing additional income and boosting retirement savings. As people get older, however, their health often declines along with their ability to keep working. Retirement could therefore become a necessity, as opposed to a lifestyle choice."
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