Majority of self-employed higher earners are not saving into a pension

February 18, 2026

New analysis from Fidelity International’s ‘No Boss, No Pension’ campaign reveals that the majority of the UK’s higher-earning entrepreneurs are failing to save into pensions, leaving billions of pounds in tax relief unclaimed.

Freedom of Information (FOI) data obtained by Fidelity show that three in five (61%) higher-rate and almost half (48%) of additional-rate self-employed taxpayers are not contributing to a pension.¹ The data is the most recently available (from the 2022/23 tax year).

In total, this means that approximately 167,000 self-employed workers who pay higher or additional-rate tax are not saving into pensions.

By contrast, HMRC data shows around 89% of eligible employees save into a pension – with higher earning employees even more likely to contribute.²

According to Fidelity calculations, despite substantial household wealth, more than one in five (22%) self-employed workers with over £500,000 in assets – around one million people – are not contributing to a pension.³

Entrepreneurs: property rich, pension poor

Fidelity’s analysis of ONS data shows that the self-employed are twice as likely as employees to own homes worth over £500,000.⁴This underlines the central role property often plays in building long-term wealth and security for entrepreneurs. However, they are far less likely to complement this with pension savings.

According to ONS data, 18% of self-employed people own homes valued at £500,000 or more, compared with 9% of employees. A quarter hold property worth at least £375,000, compared with just 16% of employees.⁵

This sits alongside strong balance sheets elsewhere, with almost a third (30%) holding more than £50,000 in savings and investments. However, despite holding a range of assets, they are less likely than employees to hold pension savings.⁶

Marianna Hunt, Personal Finance Specialist at Fidelity International, comments:

“Across the board, higher earners are some of the most at risk of under-saving for retirement and nowhere is this more apparent than among the self-employed.

“By not contributing to a pension, they are not only putting their long-term financial security at risk but also missing out on valuable tax relief.

“These numbers show that, for many entrepreneurs, it’s not a lack of income or wealth that stops them from saving into a pension. We urgently need to look at the other barriers or beliefs holding them back so we can avoid a generation of self-employed workers having to face a second-class retirement.

“Without auto-enrolment and with incomes that can fluctuate, saving can feel harder, but small, consistent steps can make a meaningful difference. Starting sooner, even with modest amounts, gives entrepreneurs greater freedom in later life and reduces the risk of relying solely on a business or property that may not hold its value. Building formal pension savings adds a vital layer of protection that supports the independence entrepreneurs value.”

Five ways entrepreneurs can take back control

To help close the gap, Fidelity highlights practical steps business owners can take:

Use pensions as the foundation of a long-term plan. Regular contributions benefit from generous tax relief and provide a dependable base for retirement saving.
Keep property, but do not rely on it alone. Property can play an important role in long-term wealth, but real returns have been weak over recent years and can lag inflation.
Use carry-forward allowances. Entrepreneurs who have not maximised their pension allowance in previous years may be able to carry forward unused allowances from the past three tax years, enabling them to make larger, tax-efficient contributions when cash flow allows.
Diversify globally. A globally diversified investment approach helps spread risk across markets. Global equities have historically delivered strong long-term, inflation-beating returns.
Contribute through the business where possible. For limited company owners, employer pension contributions can be paid directly from the business and may be offset against corporation tax, offering an efficient way to build retirement savings.

1. Fidelity International, Freedom of Information request on self-employed pension contributions in the UK, FOI request reference [FOI2025_152615]

Office for National Statistics (2025): Workplace pension participation and savings trends of eligible employees: 2009 to 2024 – GOV.UK, 5 August 2025
Analysis by Fidelity International: Two-fifths (42%) of self-employed people have total household wealth of more than £500,000, according to ONS data. And yet ONS data also shows that just 20% of all self-employed workers are saving into a pension. Therefore, at least 22% of self-employed people have wealth of £500,000 or more but don’t save into a pension. That equates to almost one million people based on a total of 4.4 million self-employed workers in the UK:

Household total wealth in Great Britain – Office for National Statistics / Saving for retirement in Great Britain – Office for National Statistics