Chancellor Rachel Reeves is being called to launch a "universal pension" system as more than one million "invisible workers" are unable to save enough for retirement.
New research from PensionBee has found that 57 per cent of Britain's gig economy workers cannot afford to contribute to a pension pot.
The pension provider launched its Invisible Worker campaign on National Freelancers Day, highlighting how millions of non-traditional workers are excluded from automatic enrolment schemes.
This campaign aims to address the plight of freelancers, unpaid carers and zero-hours contract workers who currently fall outside the traditional pension framework, leaving them vulnerable to poverty in retirement.
Rachel Reeves is being called to launch a "universal pension system" GETTY Based on a survey of 1,000 UK adults, those who either are not contributing to a pension or are unsure about their pension status revealed affordability as the primary obstacle across all non-traditional employment categories.
Some 60 per cent of self-employed and freelance workers who are not saving cited cost as their main barrier, while 57 per cent of unpaid carers and 46 per cent of zero-hours contract workers reported the same issue.
Complexity presents another significant hurdle, with 29 per cent of respondents saying they wouldn't know where to begin or find pensions too complicated.
This figure increases to 32 per cent amongst unpaid carers, suggesting particular challenges for this group.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Research revealed widespread support for pension reform, with nearly 70 per cent of respondents backing automatic pension access for all workers regardless of income, employment status or hours worked.
The survey also exposed the extent of exclusion within the current system, with more than one in three respondents (35 per cent) reporting they had felt excluded or unsupported by pension provisions due to their work arrangements.
This sentiment was particularly strong amongst self-employed and gig economy workers, highlighting a fundamental disconnect between contemporary employment patterns and existing pension structures.
PensionBee is advocating for comprehensive reforms to create a more inclusive pension system that serves all workers.
LATEST DEVELOPMENTS:
Gig workers are not able to save enough for retirement, new analysis has found
PALisa Picardo, the chief business officer UK at PensionBee, broke down why reform to the retirement system is a necessity for the Government.
She said: "It's time for a pension system in the UK that reflects the realities of modern working life and the creation of a 'universal pension' that includes millions of our nation's invisible workers."
She warned that current arrangements represent "a systemic failure" when "more than half of gig workers say they simply can't afford to save for retirement."
"Retirement should not be a luxury. It's a right earned through a lifetime of contribution - whether through freelance work, self-employment or unpaid care," Picardo added.
Most Read
