NEST to trial self-employed pension solutions

NEST says it has identified ways in which long-term saving could be encouraged but that amongst such a diverse group, and without an employer to manage enrolment and contributions, it’s unlikely that a single solution would reach the whole population and be suitable for all.

Over the next couple of years, NEST says it will trial a variety of approaches to increasing saving among the self-employed, focusing on convenience and offering a range of incentives.

NEST will consider schemes that make it easier to save for the short and long-term at the same time and apps that let self-employed people save as they spend.

It will also seek a range of partnerships, building savings opportunities into the online platforms that self-employed people already use.

Will Sandbrook, executive director of NEST Insight, said: "Auto enrolment has had a hugely positive impact on pension savings rates in the UK, but some groups are currently missing out. Of the nearly five million self-employed workers in the UK, just 17 per cent are saving for their retirement. We want to help change this.

"Over the next couple of years, we’re keen to work closely with the pensions industry, academics and government to develop a range of savings propositions and test what works. We believe there are a number of solutions that have the potential to make a very noticeable and positive impact on long-term saving amongst the self-employed."

Professor Jonathan Freeman, managing director of i2 media research, commented: "Whilst our own and previous research has demonstrated the diversity of self-employed people, one characteristic a very high proportion tend to share is that they are not saving sufficiently for their later years and the long term.

"At i2 media research we’re really pleased to be helping to address the challenge. Our research with NEST Insight has suggested a range of ways of addressing the challenge, targeting increased engagement by self-employed people in long term savings, through solutions focused on ease, convenience, incentives, trust and flexibility."