Promoting pension saving to the self-employed

A government-backed pension provider is trialling emotive messages to nudge sole traders to start retirement saving.

The messages from NEST aim to persuade the self-employed to sign up for pensions through payment or accountancy platforms or trade and industry bodies.

Four messages are being tested to encourage savings behaviour,including ‘could you save £2.50 a day?’.

‘Flexible pension options for the self-employed’ attempts to emphasise they can pay what they can, when they can.

Loss-avoidance messages, such as ‘a tax-free way to save for retirement’ and ‘don’t miss out on pension returns’, are the other messages being trialled.

NEST polled 2,000 self-employed people, finding 24% save into a pension – and 74% recognise the importance of doing so.

It also found self-employed people look at pension saving in a different way to employees.

More than three quarters (76%) have some form of savings or investment, and 68% are using these to save for the long-term.

The report said:

“This points to a conceptual difference in the way self-employed people regard pensions and retirement, compared to employees. They tend to save for the long-term rather than a specific age or period of life, and use a wide range of savings vehicles including savings accounts, ISAs and property, as well as pensions.”.

Get in touch with us now to discuss your pension on 01829 332027 (Chester) or 0151 380 0138 (Liverpool).


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