The UK Pension System: Unfair On The Young And Self-Employed?

2 October 2017

young self-employed woman Is the UK pension system unfair on younger people and the self-employed? It is according to the results of a new poll by the Society of Pensions Professionals (SPP).

The survey of SPP members was conducted from 7 August to 3 September and found that four out of five of them felt that young people were disadvantaged by the current system, with just over half of them (51%) feeling that the self-employed got a tough deal too. Those people that are just about to retire get a much better deal said 71% of the survey's respondents.

Hugh Nolan, the president of the Society of Pension Professionals said that the survey shows the government needs to begin addressing the issue of equality in the pension system to ensure that young people use pension products to prepare for their retirement.

"Despite pension reform being a major focus for the government over recent years, it is clear that the current system in the UK favours certain groups over others," he said.

"Those fortunate enough to be at or close to retirement, or in public sector jobs, look set to benefit, while the young and self-employed are deemed to be getting an unfair deal.

"If we are going to encourage young people to engage with their pensions, and for the next phase of auto-enrolment to be successful, the government will need to redress the balance."

Other interesting issues highlighted in the report include the fact that 47% of those questioned said that equality in terms of age, sex, ethnicity and religion was a major concern. 25% said that the pension system was unfair on women, compared to just 12% who thought that the UK's pension system was unfair on men.

  • Author Profile
    • Sp avatar Mat Castle

      Mat is Business Development Director at Smart Pension.