Self-employed workers face penury in retirement, with almost two-thirds failing to save for a pension, according to a new survey. The report has revealed that 62% of self-employed people have no pension, compared with 32% of employed workers. Business owners and sole traders typically have unpredictable incomes, meaning they may not have any money to spare for pension contributions in some years, but would want to make extra in years where they turn a big profit. Others might pay a large amount into a pension using the profits from selling their business.
With the majority of their wealth tied up in property, therefore one question is can your executors sell your rental property if you were a landlord? This needs to address their own demise unless they want to leave their loved ones in a right financial pickle. I only discovered recently, following the sudden death of a relative, how cruel the UK taxation system is when someone dies.
The government has confirmed the launch of Collective Defined Contribution pension schemes in a new consultation. CDC schemes, which are already popular in Denmark and the Netherlands, pay out a regular income from a collective fund rather than producing an individual 'pension pot'.
Under the new pension rules, anyone with a birthday between December 6, 1953 and January 5, 1954 has seen their state pension age rise by up to three months, and their retirement date set at March 6, 2019.
Since 2012, 10 million eligible workers have been automatically signed up to workplace pensions. From April, their contribution will rise from 3% of their salary to 5%.