The self-employed ‘could be putting themselves at risk of future debt’

The self-employed could be placing themselves at risk of debt when they retire, research has suggested.

A new study by Standard Life has found that individuals who work for themselves may be placing their business concerns before their financial security.

It revealed that self-employed people aged 35 to 44 years of age have pension savings less than a third of the size of those who are employed by somebody else.

Andrew Tully, senior pensions policy manager at the company, said that while these individuals need to make their business a success, “they also need to be aware of the implications of their employment status when planning their long-term finances”.

The average amount of money that has been put away by self-employed workers in that age bracket is currently £24,500.

Last week, statistics brought out by The Children’s Mutual showed that many parents are delaying their retirement so that they can fund their adult children.

By Joe Shervin