Pensions minister warns millions of self-employed face lower retirement incomes by 2050

DWP pensions minister Torsten Bell issued a stark warning to more than four million self-employed workers after a fresh report exposed gaps in the pension system. He told a newsletter that current saving rates are insufficient and that those retiring in 2050 are projected to receive private pension incomes about 8 % below current retirees, a shortfall he called inconsistent with progress. The alert follows a Society of Pension Professionals study, “The Missing Millions,” which argues the self-employed are largely excluded from auto-enrolment and left to arrange their own savings.

The Pensions Commission’s interim findings echo these concerns, estimating 15 million people are under-saving, a number that could climb to 19 million without intervention. Bell, a former Resolution Foundation head, said the government will not ignore the commission’s forthcoming recommendations. Experts such as Helen Morrissey of Hargreaves Lansdown noted the difficulty for fluctuating incomes to lock money into pension pots until age 55-57.