Britons approaching retirement are being urged to check their state pension entitlement, especially if they are self-employed, by leading savings experts.
Nearly two-thirds of freelancers and business owners approaching retirement age face a pension crisis, according to research cited by Phoenix Insights.
Some 64 per cent of those aged 60 to 65 holding no private retirement savings whatsoever. This alarming figure emerges as Britain experiences a surge in self-employment following a temporary decline during the pandemic.
The shift towards freelancing, portfolio careers and entrepreneurship has accelerated, driven by workers seeking greater flexibility, autonomy and opportunities to monetise personal interests.
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Self-employed Britons are being urged to check their state pension entitlement
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Remote working possibilities have further fuelled this trend, with some embracing location-independent lifestyles whilst managing their own ventures.
Dean Butler, the managing director for Retail Direct at Standard Life, part of Phoenix Group, warns that whilst self-employment offers numerous advantages, it carries significant financial obligations that are frequently neglected.
"While self-employment can bring autonomy, it also brings new financial responsibilities. One of the most often overlooked is pension saving without an employer to set up a pension plan or contribute to your pot, it's especially important to stay on top of your retirement savings," he states.
The Government has responded by establishing a new Pensions Commission, which will address major policy challenges including improved provision for currently underserved demographics such as freelancers and business owners.
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Many Britons are reliant on the state pension in retirement
| PEXELSThe state pension has risen to £11,973 for the 2025/26 financial year, with further increases anticipated for 2026/27. However, this sum falls significantly short of providing adequate retirement income for most individuals.
Research from the Pensions and Lifetime Savings Association reveals that a single person requires £14,400 annually to maintain even a basic standard of living during retirement.
This represents a shortfall of more than £2,400 compared to the current state pension provision.
Securing the maximum state pension therefore becomes crucial, requiring 35 years of complete National Insurance contributions to qualify for the full amount.
Individuals without traditional employment bear sole responsibility for maintaining their National Insurance record, which directly impacts their retirement income.
Missing contributions can substantially reduce state pension entitlements, making it essential to monitor one's National Insurance history regularly.
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Older Britons could get a significant pension income boost | GETTYFreelancers can review their contribution history online and make voluntary payments to address any gaps from 2017 onwards.
Butler added: "While those who have always worked for an employer will be used to NI contributions being taken out of their salary automatically, this is not the case when you become self-employed.
When you are self-employed you are solely responsible for paying your NI contributions, so it’s especially important to make sure you are keeping up with them.
"You can make these payments through your yearly self-assessment or by making payments online.”