The majority (90 per cent) of self-employed workers aged 55 and over are "off track" for a moderately comfortable retirement, with less than £250,000 in their pension, research from Interactive Investor has found.

The survey showed that many self-employed workers are “teetering on the brink” of a pension crisis with a “substantial” number lacking the financial means necessary for a basic retirement.

Indeed, the research revealed that 38 per cent of respondents have no pension savings at all, rising to 50 per cent among those under 35.

In addition to this, 37 per cent of self-employed people are not paying into a pension, while almost a third (31 per cent) have less than £1,000 in savings.

The research highlighted a low pension wealth among the self-employed as six in 10 had less than £10,000 in pension wealth and half of respondents had less than £10,000 saved.

It also indicated that women face greater financial challenges, with 63 per cent of self-employed women earning less than £30,000, compared to 38 per cent of self-employed men.

Furthermore, when asked about the amount in their pension, 43 per cent of self-employed women said they did not have a pension, compared to 35 per cent of men.

Working in retirement out of necessity was another element that was surveyed, with the findings showing that over a third (35 per cent) of those over 55 planned to continue to work beyond their 70th birthday due to inadequate pension savings.

Meanwhile, 17 per cent of over 55s intended to fully stop working when they retire.

Interactive Investor also found a lack of financial advice and knowledge amongst self-employed individuals, as 23 per cent of self-employed workers received financial advice.

Furthermore, previous research found that less one in 10 self-employed workers could answer three simple pension questions, while one in six self-employed individuals over 55 answered all three questions correctly.

Given this, Interactive Investor argued that four policy recommendations could help solve the self-employed pension saving crisis.

These recommendations included greater education and better signposting of existing pension guidance services like Pension Wise, expanding the Pension Wise service to all aged self-employed individuals, auto-enrolment for the self-employed and developing and promoting a pensions dashboard tailored to the self-employed.

Commenting on the research, Interactive Investor CEO, Richard Wilson, said: “Our report makes it patently clear that many hardworking self-employed people are on course for a second-class retirement.

“The self-employed are essential to our nation’s competitiveness yet they are at a disadvantage when it comes to saving for their future. This isn’t right and needs to change.

“Policymakers have failed to address the unique challenges faced in saving for retirement when you work for yourself.

“It’s high time policymakers paid greater attention to this often-overlooked segment of the workforce.”

Wilson argued that there needs to be a “concerted effort to integrate self-employed workers into the pension conversation”, offering them a comprehensive level of support and resources in the same league as what’s available to salaried employees.

“Without such reforms, the chasm between the pension haves and have-nots will only widen, undermining the principles of fairness and financial security for all,” he urged.

Adding to this, Interactive Investor senior personal finance analyst, Myron Jobson, noted: “Our report lays bare that many self-employed people are sleepwalking their way into retirement difficulty and potential poverty.

“The fact that 38 per cent of the sample said they have no pension savings at all, with 15 per cent claiming to have no cash savings at all, underscores the perilous financial position many self-employed workers find themselves in.

“It is unfortunately yet another area in which the gender disparity is stark, with women on more unstable financial footing. Compounding these issues is a glaring lack of financial advice.

“It means that the prospect of working into old age is becoming a grim reality for many self-employed people – born out of financial desperation rather than choice.”

Jobson argued that self-employed people are not homogeneous, instead they represent a diverse and multifaceted group spanning countless professions and industries.

“From freelancers and small business owners to independent contractors, each self-employed individual faces unique challenges and circumstances, especially when it comes to saving for retirement,” he stated.

“Understanding this diversity is crucial for addressing their distinct financial needs and ensuring they have the support necessary to secure their futures.”

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