Freelancers and creatives left behind as pension gaps widen in growth sectors

Creative workers and freelancers are being left behind by the UK’s pension system, new data shows, raising concerns that many of those driving the country’s economic growth could be heading for retirement without enough to live on.

Analysis from the Standard Life Centre for the Future of Retirement reveals that nearly one in four creative workers (24%) are not enrolled in any pension scheme - more than twice the national average. The creative industries have the lowest pension participation of all eight sectors identified by the government’s Industrial Strategy as key to economic growth, despite employing 2.4 million people.

The think tank also warns that a wave of early exits among over-50s is putting output in these growth sectors at risk. With an average age of 44.8, the creative industries have one of the oldest workforces among the government’s priority sectors, and thus see tens of thousands of older workers leaving each year due to early retirement, ill health or other pressures.

Patrick Thomson, head of research analysis and policy at the Standard Life Centre for the Future of Retirement, said: “Our economic future, driven by these high-growth sectors, relies heavily on the experience of over 50s – yet we’re at risk of letting them slip away … Supporting longer working lives isn’t just smart economics – it’s essential for a fairer, more resilient society.”

Affordability and knowledge gaps to blame

Recent analysis by PensionBee found that more than half of gig economy workers (57%) cannot afford to contribute to a pension. Affordability was also cited as the main barrier by self-employed and freelance workers who are not currently saving, followed closely by those on zero-hours contracts.

Beyond cost, knowledge gaps are also contributing to exclusion. Nearly one in three gig workers who are not saving into a pension say they wouldn’t know where to start or find pensions too complicated.

Scottish Widows recently warned that more than 15 million people across the UK are now at risk of retirement poverty, up from 13.4 million a year ago. The self-employed are among the hardest hit, with over half unlikely to meet their basic needs in retirement. Just one in four are on track for even a minimum standard of living.

Paul Leandro, partner at Barnett Waddingham, said: “Year in, year out, the inadequacy of pension contributions is a concern we see – and without clear, decisive action for change, the ticking timebomb of the UK’s pension system could soon blow up in our faces.”

The pressures are particularly acute for generation Z. A recent Pensions Policy Institute report highlighted the financial and structural barriers faced by younger workers, many of whom are locked out of auto-enrolment due to irregular work or low earnings. Even those who are enrolled are often saving at minimum levels that fall far short of what is needed for a moderate standard of living in retirement.

Calls for reform grow louder

Calls for reform are gaining momentum. PensionBee is advocating for a universal pension model that gives every worker automatic access to a scheme, regardless of income, hours or employment status. The Standard Life report similarly calls for pension planning and financial guidance to be embedded into sectoral workforce

The Pensions Regulator is also beginning to explore solutions. A recent policy hackathon organised by its new Innovation Support Service included the idea of a flexible pension fund for the self-employed.

As policymakers look ahead to the second phase of the pensions review, there is growing pressure to consider how the system can better serve workers in non-traditional jobs. That includes extending auto-enrolment access, reviewing contribution levels, addressing fragmented pots and tailoring communication to digital natives.

Ultimately, unless the pension system evolves to reflect the realities of modern working life, millions risk falling through the cracks. As policymakers prepare for the next phase of reform, the challenge will be to move beyond incremental changes and deliver a system that works for everyone - regardless of how or where they work.