A] Prelude
For more information on pension systems, risk and coverage, feel free to visit our dedicated webpages:
https://expatpensionholland.nl/uk-expat-pensions
https://expatpensionholland.nl/global-pillars-systems
https://expatpensionholland.nl/global-investments-risks-0
https://expatpensionholland.nl/global-social-security-coverage
For even more information feel free to visit the following external sites:
https://www.apw-ifa.co.uk/pension-planning-for-freelancers-and-gig-economy-workers/
https://www.pensionsage.com/pa/Half-of-Gig-workers-cant-afford-to-save-into-a-pension.php
B] The Issue
More than a million UK gig workers are unable (!) to save for retirement, according to fresh data from PensionBee, a leader in the consumer retirement market, prompting renewed calls for a ‘universal pension’ system to ensure every worker, regardless of income or employment status, has automatic access to a pension.
C] The Details
The findings, launched alongside PensionBee’s Invisible Worker campaign on National Freelancers Day, highlight the challenges faced by freelancers, unpaid carers and those on zero-hours contracts who are not auto-enrolled into a pension, leaving them unsupported in saving for retirement. The campaign aims to address the gaps in the UK pension system, where many non-traditional workers are left with limited options for long-term financial security.
A nationally representative survey of 1,000 UK adults not paying into, or unsure if they are paying into a pension, revealed affordability as the main barrier. 57% of all non-traditional workers surveyed said they could not afford to save into a pension, with the figure rising to 60% for self-employed and freelance workers, and 57% for unpaid carers. Among those on zero-hours contracts, 46% identified cost as the primary obstacle to saving.
D] Funding & Literacy
Beyond affordability, knowledge gaps remain a challenge, with 29% of gig economy workers reporting they do not know how to begin saving for retirement or find pensions too complex, a figure that increases to 32% for unpaid carers. These findings suggest systemic issues in pension accessibility and education, preventing workers from engaging with long-term financial planning.
E] Options
In response to these challenges, nearly 70% of respondents stated pensions should be automatically (!) available to every worker, regardless of income or hours worked, reflecting growing public support for pension reform.
Additionally, 35% of survey participants indicated they have felt excluded or unsupported by the pension system due to the nature of their work, with self-employed and gig economy workers particularly affected. This highlights a misalignment between current pension structures and modern working patterns in the UK.
F] Finally
The findings come as policymakers and providers are being urged to make pensions simpler and more accessible, ensuring long-term saving is viable for all workers. PensionBee is calling for reforms to prioritise affordability and simplicity while expanding eligibility, advocating for a pension system that protects those at highest risk of poor retirement outcomes.
PensionBee chief business officer UK Lisa Picardo said, “It’s time for a pension system in the UK that reflects the realities of modern working life and the creation of a ‘universal pension’ that includes millions of our nation’s invisible workers.
“Too many people working hard outside traditional employment structures are being left behind by the current pension system, and are facing the very real risk of a poor retirement outcome with heavy reliance on the State Pension. “When more than half of gig workers say they simply can’t afford to save for retirement, this stops being a personal finance issue and becomes a systemic failure.
“The message from the public is clear: they want a pension system that works for everyone, not just those in secure, salaried roles with employer contributions. “We need a safety net that catches everyone, especially those who will be most in need in later life. Automatic access to pensions, regardless of income, hours or employment status, is the next logical step towards a fairer future. Retirement should not be a luxury. It’s a right earned through a lifetime of contribution – whether through freelance work, self-employment or unpaid care.”
G] EIOPA’s Stance
In order to create a broader insight we always like to include the policy of EU insurance regulatory body called EIOPA about these issues. Which is included in the following link: