IPSE recommends 'sidecar pension' to get self-employed saving

AE 'won't work' for self-employed

Hannah Godfrey
clock • 2 min read

A 'sidecar pension' would be an effective method to get the self-employed saving for their retirement, according to the Association of Independent Professionals and the Self-Employed (IPSE).

The trade body's report ‘How to solve the self-employed pensions crisis' described a ‘sidecar pension' as a scheme that allows someone to pay money into a fund that divides contributions between a pension pot and a ‘rainy day fund'. Once contributions hit a certain point in the rainy day fund, all further contributions are diverted solely into the pension pot instead of both pots. According to the report, there are now some 4.8 million self-employed people in the UK, 44% of whom are aged between 50 and 65. Fewer than a third (31%) of those individuals are paying into a pension, it add...

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