New pension aimed at freelancers | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 21/11/2019

A new pension provider has been launched that is targeted towards the self-employed and more specifically freelancers.

Penfold is targeting the 15% of the UK workforce who are currently self-employed and has stated that it aims to revolutionise the pension industry for UK freelancers. According to figures released by Penfold, five million workers are currently self-employed and, of these, 86% currently do not save into a pension. The company is hoping to change this by offering self-employed workers with a pension that is clear, simple, digital and can be activated in under five minutes.

Once the pension is activated, contributions can be paused, topped up with a bonus and combined with multiple pension balances. Penfold states that users can choose where their money is kept or invested, and the dashboard explains how much they have saved and how far off they are from their ultimate end-goal.

Pete Hykin, co-founder of Penfold, explained: “We know that auto-enrolment has increased participation in pensions to 80% among the employed, but this hasn’t helped the millions of UK self-employed.

“It’s almost like the self-employed, who we know are the backbone of the economy, are being ignored by the Government and UK industry. There are absolutely no pension options out there that adequately serve those working for themselves.

“We’re aiming to make pensions not just easier, but more attractive for self-employed people to start planning for later in life. Often people put off setting up a pension due to the amount of understanding needed, the volume of paperwork and even just the fact that it can involve calling multiple providers to find the best option. Our research has shown the scheme needed to be flexible and adapt to the end-user, not the other way around.”

Chris Eastwood, co-founder of Penfold, added: “Pensions for the self-employed is just phase one of the Penfold plan. The great thing about the pension industry is that there’s so much room for improvement – whether it’s the option of setting up or paying into a pension for your children, giving people more visibility and control over the environmental or social impact of their pension investments, or even earning rewards like airmiles for every contribution. Our aim is to make pensions as accessible and engaging as banking has become.”

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