Four in 10 freelancers hope to retire before their sixties

Campaigners pushing to give freelancers employee-style rights if such workers end up paying employee levels of tax may have to factor-in pensions being a perk they’re happy to forego.

In a study late last year, sick pay -- not pensions provision -- emerged as being the statutory benefit that self-employed sole traders said they’d like to receive the most.

And now, in a drill-down to research uncovering the 2018 plans of such independent workers, more than four in 10 freelancers said that, financially, they hope to retire before they turn 61.

Six per cent said between 41 and 50 years-old was their aim for retiring, further to 35 per cent who said they hope to stop working a full five years before the current male state pension age (65-years-old).

Forty-eight per cent said their hope was to retire between the age of 61 and 70, yet 10% sounded even more hard-pressed, saying age 71 was hopefully when they could finally stop work.

At the completely opposite end of the spectrum, only one in 10 could say their hopeful retirement date was before their 40th birthday. The other 41% retiring before 61 was greeted with optimism.

“That almost half of independent workers hope to retire close to the UK retirement age suggests that freelancing and contracting is a sustainable career choice,” said Seb Maley, chief executive of Qdos, which commissioned the findings.

He added: “Despite the clear challenges of working without [an] employer's pension contribution, freelancers can in many cases command day rates to stop working at a similar age to the average UK employee.”


11th January 2018

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