SIX IN TEN SELF-EMPLOYED WOMEN ARE NOT SAVING ENOUGH FOR THEIR FUTURE

SIX IN TEN SELF-EMPLOYED WOMEN ARE NOT SAVING ENOUGH FOR THEIR FUTURE

       More than two-thirds of self-employed women (71%) do not have any form of pension savings

Six in ten (61%) self-employed women believe they are not saving enough for their future according to analysis from Fidelity International’s Generation Self-Employed* report.

While most women (96%) choose self-employment to feel more in control of their working lives, many feel decidedly less confident about their financial future. More than two-thirds (71%) of self-employed women say they do not have any form of pension. This is in stark contrast with women in employment where only 35% say they have no pension savings at all. 

 

 

Self-employed women

Women in employment

Current workplace pension

n/a

49%

Previous workplace pension

16%

24%

Private pension

18%

16%

Women with no form of pension

71%

35%

Percentage of self-employed and employed women saving into a pension

Recent ONS figures reveal there are more women in work than ever before – with the employment rate gap between the sexes narrowing to 8.2% in the three months to July 2019. Furthermore, there are more women choosing self-employment, with a recorded 1.7 million in charge of their own businesses.**

Emma-Lou Montgomery, associate director for Personal Investing at Fidelity International, said: “More than 10 million*** people now benefit from being automatically-enrolled into a workplace pension. However, choosing to become your own boss means assuming the responsibility of planning for retirement yourself. And while the number of female entrepreneurs is on the rise, our figures suggest many have yet to consider what this means for their finances.

“One third (32%) of self-employed women feel they are saving enough for the future, however, our research reveals that many are missing out on opportunities to increase their wealth through investing. Of those surveyed, just 10% currently invest in stocks and shares, compared to a quarter (26%) of self-employed men. And just over a third (35%) have an ISA. We know from our ongoing Women & Money campaign that there is a gender pension gap of almost 11%,^ so ensuring we are harnessing our financial power and investing for our futures is even more important for women.”

The research also reveals that almost three-quarters (73%) of those not saving for the future say they simply cannot afford to, and 11% don’t know how to go about it.

Emma-Lou Montgomery adds: “There is no doubt that women are good savers, but they tend to keep their money in cash rather than invest in the stock market. The first step to addressing this is by helping them to feel informed and confident in making decisions; changing the way they think about investing.

“This doesn’t have to mean contributing large sums into a retirement or investment portfolio in one go. Rather, a great way of saving that doesn’t require a big sacrifice is to start a monthly saving plan where you allocate a small amount on a regular basis. For example, you could contribute as little as £100 a month into your Self Invested Personal Pension (SIPP). If you did this over 20 years you could generate a savings pot worth £36,268 and after 30 years you could have £68,181^^.”

These and other findings are included in Fidelity International’s report Generation Self-Employed, which provides insight into how the self-employed are managing their personal finances and their attitudes towards saving and investing.

*Source: Generation Self-Employed Report, Fidelity International, January 2019

**Source: Office of National Statistics, Labour market economic commentary : September 2019

***Source : The Pensions Regulator, February 2019 : https://blog.thepensionsregulator.gov.uk/2019/02/11/10-million-are-in-but-there-is-still-more-to-do/

^Source: Women & Money, The full report is available to download here: Fidelity.co.uk/womenandmoney         

^^Source: Fidelity International, November 2019 – Datastream, FTSE All Share, Currency: GBP. Based on a hypothetical illustration assuming a rate of growth of 5% a year, no initial charge, a platform service fee of 0.35% and an annual management charge at 0.75%.

Download report here: www.fidelity.co.uk/self-employed

Methodology

Research for Fidelity’s Generation Self-Employed report was carried out by ComRes. 1,032 employed people and 1,028 self-employed people were surveyed on their personal finances and their attitudes towards saving and investing. The survey was conducted from the 14 -30 January 2019 across the United Kingdom. The data was weighted by age to be representative of self-employed people. Ages were categorised in the following ways;

o    Gen Z (18-22)

o    Millennials (23-38)

o    Gen X (39-57)

o    Baby boomers (58-72)

 

o    Older generation (73+)

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