The estimated 1.3 million workers in the gig economy, who are paid based on the number of jobs or ‘gigs’ they perform rather than receiving a traditional salary, risk having no pension.
According to the Work and Pensions Committee the number of workers in self-employment has grown by nearly a million in the last decade, rising from 3.8m workers to 4.8m. Recent research revealed that only one-third of the self-employed UK workforce are paying into a pension.
Neil Tonks, Legislation Manager at HR and payroll provider MHR commented:
“Despite attracting criticism for the way it allows unethical employers to try and sidestep basic employment rights, including holiday and sick pay, the gig economy continues to expand and shows no signs of slowing down. " He continued, “Worryingly, however, gig workers often don’t have access to a workplace pension, and in most cases are not earning enough to put money aside into a private pension. Unless action is taken, we risk sleepwalking into a pensions crisis whereby a generation of workers, who perhaps require security the most, are left behind in a vulnerable position; trapped in low paid work, unable to save for the future and forced to work in their retirement years because they haven’t accrued enough years required to claim state pension.”https://www.businessleader.co.uk/surge-in-gig-economy-work-leaves-millions-facing-pension-poverty/51881/
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