Are self employed millennial's with insecure working hours working themselves into a pension crisis?


    According to the Work and Pensions Committee the number of workers in self-employment has grown by nearly a million in the last decade, rising from 3.8 million workers to 4.8 million.

    With increased technology and the number of new immerginging carrer options that didnt exist outside of the traditional methods those numbers will rise. 

    Neil Tonks, Legislation Manager at MHR comments: “Despite attracting criticism for the way it allows unethical employers to try and sidestep basic employment rights, including holiday and sick pay, the gig economy continues to expand and shows no signs of slowing down. For its supporters it delivers a much-needed route into work and provides parents and carers with greater freedom and flexibility to fit their work around the lifestyle and caring responsibilities.

    Recent research by the Association of Independent Professionals and Self-Employed revealed that only one-third of the self-employed UK workforce are paying into a pension.

    That means in 40 - 50 years we will have a generation of people who may not be able to afford to retire. They will either have to continue to work. In an office job that is doable but it could mean self employed tree surgeons risking their health tackling jobs they may not be physically capable of doing to the same standard. It would take jobs directly away from the young and emerging workforce which relies on their predessessors handing over the reins as such, or they will rely heaily on the governemnt to fund that retirment. In no world is there a benefit to having a generation of people with no retirment.

    It sucks for the economy, fair to say that wont be your main concern. The main concern will be the holidays that cant be afforded, the budgeting for every day items and generally not enjoying the ideal retirment. 

    He adds: “The lack of pension provision for the growing number of workers in the gig economy is a real concern which needs addressing fast. While many people may perceive gig-working as a short-term option and assume they will receive a pension at some point in their career, the reality is that many people get stuck in a rut and may work in this type of employment for longer than they initially envisaged, leaving them facing an insecure future.

    Firms who hire staff must now enter those who qualify into a work place pension. The downside to this is some employees started droping the hours of their contracts so that a full time job would be split over two or three employees keeping their income too low for auto enrolment. These are the people left working two or more jobs to meet their costs. They don't have money left over for hoidays or luxuries let alone thinking years down the line about their retirment. 

    We would love to see a product introduced that creates a pension platform for self employed workers and those in part time or seasonal work where the hours can fluctuate toensure they are able to put money aside for their retirment when it is there.

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