Standard Life notices self-employed savings gap

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Standard Life notices self-employed savings gap

Andrew Tully, senior pensions policy manager for the insurance company, said the savings gap was caused by the different priorities of the two groups, which he broadly distinguished as being successful in business and taking time to invest for retirement.

He added: "The recession […] created a whole new group of self-employed entrepreneurs who need to reality check their personal finance plans and focus on keeping them on track."

The average savings amount for the self-employed 35 to 44-year-old worker is £24,500, which is less than half the £73,000 fund for a person on a salary.

Standard Life advises the self-employed to set up a monthly contribution plan which would guard against any unforeseen fluctuations to income and recommends using the pension fund as a way to buy commercial property, bringing certain tax advantages.

In spite of this disproportion, however, independent pensions advice remains the main financial advice driver, according to Unbiased.co.uk.

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