Payroll

Self-employed make biggest gains from new pension rules

Britain’s self-employed workforce have made stand-out gains from the government’s new pension rules, which went live on 6 April.

The self-employed are now entitled to up to 155.65 a week once they reach state pension age, compared to a previous maximum entitlement of 119.30.

With many individuals now spending over 20 years in retirement, the 36.35 a week increase could see some self-employed gain up to 40, 000 more than they previously could.

Despite this, a recent survey conducted by pensions specialist Aegon revealed that just 30 per cent of the UK’s self-employed know about the new pension measures.

Aegon pensions director Steven Cameron said: For those self-employed individuals who reach state pension age today, it’s a case of What a difference a day makes. The self-employed were previously excluded from the additional earnings-related pension.

Although the increase will be welcomed by the vast majority of the growing number of freelancers in Britain, it is unlikely these workers will be able to earn more in retirement than company employees.

unlike employees, this group are not benefitting from automatic enrolment into a workplace pension scheme, making it even more important to make adequate private pension provision for themselves, Cameron went on to say.