Around 1,000 self-employed workers contributed six-figure sums into personal pension pots in the tax year 2023-24, according to HM Revenue and Customs (HMRC) figures. Among the top 25 entrepreneurs contributing into personal pensions, the average sum put in over the year was £304,400, based on HMRC's response to a freedom of information (FOI) request from money app Plum.
HMRC's self-employed figures, derived from self-assessment tax returns, show that around 600 self-employed people contributed £100,000 to £124,999, 300 contributed £125,000 to £149,999, 100 contributed £150,000 to £174,999, and 100 contributed £175,000 or more. The average annual pension contribution by self-employed people who made contributions was £7,700.
However, many self-employed people are not actively saving for retirement. Some 90,100 self-employed people contributed £999 or less in 2023-24. Rajan Lakhani from Plum noted that while auto-enrolment helps salaried employees, the self-employed face unpredictability, making retirement planning harder. He described the “super contributors” as exceptions.
The Pensions Commission recently warned that self-employed people are at risk of under-saving, with only 4% of wholly self-employed workers saving for retirement. The commission's interim report highlighted that around 15 million people are under-saving, and a final report with recommendations is expected in early 2027.
