There is a “worrying” gap in retirement planning among self-employed workers, freelancers, and ‘digital nomads’ in the UK, Aviva has warned.

Its research found that 34 per cent of digital nomads (people who use technology to work remotely while travelling and living in different locations) were actively saving into a pension or retirement scheme.

Fewer than four in 10 (38 per cent) self-employed workers and 40 per cent of freelancers were actively saving for retirement, according to the study.

Aviva highlighted that this meant the majority of people working outside of traditional employment structures were not building up dedicated retirement savings, putting them at risk of financial insecurity later in life.

While 31 per cent of digital nomads said they would start saving soon, 30 per cent admitted they were currently doing nothing to prepare for retirement.

There was a similar story among the self-employed and freelancers, with 23 per cent and 18 per cent respectively planning to start saving soon.

Almost a third (32 per cent) of self-employed workers and 34 per cent of freelancers were not taking specific action to prepare for their retirement.

Aviva also found that awareness of personal pension options was limited, with just 25 per cent of digital nomads, 24 per cent of self-employed workers, and 22 per cent of freelancers knowing about self-invested personal pensions and stakeholder pensions.

Confidence in long-term financial security was mixed, with 55 per cent of self-employed workers and 50 per cent of freelancers feeling confident and secure about their future.

“This research highlights a clear gap in retirement planning for people who are self-employed and freelance,” commented Aviva head of savings and retirement, Alistair McQueen.

“Without auto-enrolment or employer contributions to fall back on, many risk reaching later life without the savings they’ll need.

“The good news is that small, regular steps – like opening a personal pension and setting an affordable monthly contribution – can make a big difference.”

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