The Labour Government has been called to go further in its reforms to pension savings as "millions remain excluded from the system".
A stark pension divide has emerged among Britain's gig economy workforce, according to fresh findings from retirement specialist PensionBee.
The financial institution's survey of 1,000 gig workers uncovered that merely 16 per cent of individuals with earnings below £15,000 make consistent pension contributions.
Specifically, PensionBee's latest research examined how self-employed and gig workers lack equal opportunities for retirement security compared to traditional employees.
Research from PensionBee is shining light on the discrepancies between gig economy workers and employees who contribute to retirement savings via auto enrolment
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Some 20 per cent of low earners plan to depend entirely on state pension provision, significantly increasing their chances of experiencing financial hardship during retirement.
Daily living costs remain the primary barrier preventing pension savings across nearly all salary levels, reflecting ongoing cost-of-living pressures.
Younger workers encounter the steepest challenges, with 23 per cent of those aged 18-24 reporting they cannot afford pension payments.
The generational gap becomes evident when examining retirement expectations - 22 per cent of the youngest workers anticipate relying on relatives for financial support in later life.
Pensioners are missing out on support | GETTYIn comparison, only three per cent of over-65s in the UK share this expectation. Financial confidence correlates strongly with earnings levels.
Among workers earning below £15,000, only 18 per cent express strong confidence about their retirement prospects, contrasting sharply with 39 per cent of those earning £100,000 or above who feel very confident about their financial future.
The findings demonstrate widespread demand for pension system changes, with adaptable payment structures emerging as the most sought-after feature.
Over 50 per cent of workers earning £15,000-£19,999 indicated that options to "contribute small, flexible amounts" would encourage them to begin pension savings.
The research underscores calls for comprehensive reforms as the Pensions Commission examines retirement adequacy.
Proposed changes include enabling self-employed individuals to arrange pension deductions through their tax self-assessment returns and establishing more adaptable contribution mechanisms.
Such modifications could particularly benefit lower-income workers who currently find traditional pension schemes inaccessible due to rigid payment requirements.
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How much do you have saved for retirement? | GETTY Lisa Picardo, PensionBee's Chief Business Officer UK, highlighted how auto-enrolment has benefited traditional employees while leaving self-employed workers behind.
Ms Picardo shared: "These workers deserve the same chance to build a secure retirement, but face additional barriers when it comes to starting and sustaining contributions."
She emphasised that self-employed individuals can still take charge by establishing personal pensions and contributing flexibly when finances allow.
"With the right tools and support, small, consistent steps can make a real difference to long-term retirement outcomes," Picardo stated.