While auto-enrolment workplace pensions have been a major success, and we are told 5m have SIPPs (including some self employed people), the fact is that the self employed are still very badly served when it comes to pensions.

Left out of auto-enrolment and not covered specifically by any wider pension scheme they struggle to save for retirement.

A new study by CMC Invest, a SIPP and investment provider, found that two fifths of self-employed people, 41%, were failing to pay into any kind of personal pension.

Surprisingly, almost 1 in 2 said they were not aware of SIPPs, which could well be the most sensible solution to their retirement savings needs. There' a lack of awareness here and certainly a need for education.

I’m not giving any advice here but SIPPs’ ability to stop-start contributions and provide maximum flexibility is almost perfectly designed for the self-employed. Except millions are not aware of it.

Stakeholder or personal pensions could also be an answer or even setting up an ISA plan. And yet many self employed seem to shun pensions. I suspect they are too busy trying to earn a crust and filing forms to the Inland Revenue.

Realistically this can’t go on and politicians must grasp the nettle and encourage far more self employed people to chip in to a pension. There is no reason why nine in 10 self employed people should not be paying in to a pension.

Without this many will face the grim prospect of working into their seventies or later.

If you’re a self-employed plumber or decorator I suspect this is not a prospect you look forward to. I can't see too many keen to be climbing ladders their later years or engaging in manual work.

Of course, not all self employed are manual workers but many are.

So what’s to be done?

Auto-enrolment is being extended to younger age groups and part-time workers so it’s not beyond the government's ability to provide an auto-enrolment ‘light’ scheme for the self employed.

There are many other potential solutions, perhaps encouraging self employed people to save into a pension by providing some tax relief or other financial incentive.

Whatever the answer the millions missing out on pensions cannot go on.

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Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience in finance, business and mainstream news. This topical comment on the Financial Planning news appears most weeks, usually on Fridays but occasionally other days.  Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Follow @FPT_Kevin >Top Tip: Follow Financial Planning Today on Twitter / X @_FPToday for breaking news and key updates