Self-employed face pensions crisis with entrepreneurs falling behind

Business owners and entrepreneurs are at risk of a retirement savings crisis because many prioritise investing in their businesses over pensions, Rathbones has argued.

In its submission to the government's Pensions Commission, the wealth manager called for a simpler and more stable pensions system, warning that three in 10 entrepreneurs do not have a pension and almost half lack an ISA.

It said retirement policy should take a broader view of people's finances by recognising pensions alongside investments, property, business assets and other sources of wealth, while also placing greater emphasis on helping retirees turn their savings into sustainable, tax-efficient income.

Frequent policy changes have made long-term saving more complex and less predictable, according to Rathbones, which also alluded to generational challenges, where Generation X is increasingly squeezed by caring for both children and elderly parents, while Generation Z faces a higher state pension age.

Rathbones CEO, wealth, Camilla Stowell, said: "We'd like pensions policy to reflect better how people actually live, work and save.

"A simpler, more predictable system would give people greater confidence to plan for the long term, particularly for the self-employed who are often a forgotten cohort when it comes to retirement frameworks."

Rathbones said it looked forward to engaging further with the commission as it develops its final recommendations, which are expected in 2027.

---