Seven in 10 self-employed people aren’t saving regularly for retirement or aren’t saving at all.
That’s according to a TD Ameritrade report on the retirement savings habits of self-employed Americans. Completed in October and conducted in collaboration with Head Research, a unit of Head Solutions Group, the survey polled 1,507 self-employed individuals and 500 people among the traditionally employed.
A still greater majority of the self-employed who are saving for retirement — 83 percent — have had to reduce or “pause” their retirement savings contributions at one time or another, the report reveals. This compares with 70 percent of traditionally employed people who have done so.
The survey points to the following challenges the self-employed face in saving for retirement:
- Lack of a steady income (52 percent);
- Paying off major debts, not including a mortgage (31 percent);
- Lack of steady employment (28 percent);
- Expenses related to building up a business (26 percent);
- Health care expenses (24 percent);
- Education expenses (23 percent);
- Mortgage (17 percent);
- Divorce expenses (8 percent);
- Other major expenses (5 percent);
- Eldercare expenses (3 percent).
More than 10 million Americans work for themselves, according to TD Ameritrade. Since 2001, the number of self-employed individuals has increased by more than 14 percent.