On the go: Scheme members are paying more into their pensions in 2021 than in 2020, with the largest monthly contributions coming from the self-employed, according to figures from PensionBee.
Employed scheme members’ monthly contributions rose from £374 in the first half of 2020 to £508 in the first six months of this year, while contributions from the self-employed jumped from £543 to £690 over the same period.
PensionBee noted that this rise came in spite of the lingering economic effects of the pandemic, which are thought to have hit the self-employed especially hard.
A recent study by the Centre for Economic Performance found that 37 per cent of self-employed workers worked 10 hours or fewer a week in January 2021, while just under half (46 per cent) of self-employed workers reported having had trouble covering basic expenses that month.
Drawdown-eligible self-employed savers are withdrawing more of their savings, however, with the average amount increasing by 47 per cent, from £9,309 in the first half of 2020 to £13,722 in the second half.
By contrast, drawdown-eligible employed savers have kept more of their money invested, with withdrawal amounts falling by 8 per cent, from £10,602 to £9,765 over the same period.
PensionBee chief executive Romi Savova said: “It’s encouraging to see both employed and self-employed savers prioritising their pensions by increasing their monthly contributions, particularly during recent lockdowns.
“As always, we would encourage those who have a larger disposable income to continue saving where possible, and for those in retirement to keep as much of their pension invested until the exact moment they need it to ensure they’re well-positioned to enjoy a happy retirement.”
