The Gig-Economy has been a controversial area and topic for companies and the employees that make up the workforce. Over the years, the number of employees identifying as Self-employed rose to 4.7 million according to the ONS. But while the level of self-employed has risen, there’s a lack of access to healthcare and work safety.
According to The Insider, Gig-Economy exploitation remains rife among companies, threatening its workforce. But according to the ONS, the number of its workers contributing to Pensions has dramatically fallen. It’s in contrast to levels of employed staff that enjoy auto-enrolment, placing many self-employed at risk.
Gig-Economy Pensions crisis
While the number of employees in the Gig-Economy increases, the number of those saving for a pension dwindles. According to research conducted by the Office of National Statistics, it’s far below desirable levels. Between the age groups of 35-55, 45% of them have no current savings for a pension scheme compared to 16% from employed.
Self-Employed individuals over 55% consist of 30% that have no existing pension savings either. The difficulties faced by freelance and self-employed with retirement is that many put it off to use the money for their business. Sean McCann of NFU Mutual reinforces this pressing issue among the self-employed.
‘While auto-enrolment is making it easier than ever for employed people to save for their retirement, many in self-employment put off saving into a pension in favour of investing in their own business.’
These figures were published in the wake of the Governments response to the Taylor Review on Gig-economy workers rights. The government’s review of auto-enrolment within the employed sphere missed the opportunity to address this issue among self-employed.