NEW YORK, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Just one in five (21%) self-employed Americans can afford to contribute regularly to retirement, according to a new survey by digital retirement provider PensionBee. The findings underscore a stark gap between these workers and employees with access to employer-sponsored plans, at a time when gig work is on track to make up the majority of the U.S. workforce.
48% of self-employed Americans save for retirement, but more than half of that group do so irregularly, only putting away money when extra cash is available. Among the 52% not saving at all, 71% say they cannot afford it. Other reasons cited include retirement “not being a financial priority” (12%) and “not thinking about it yet” (12%).
“It’s common to hear people say, ‘I won’t ever retire,’ and that’s everyone’s choice. But having enough saved for retirement ensures that it truly is a choice and not a decision made out of necessity,” said Romi Savova, CEO of PensionBee.
Nearly one in four (24%) self-employed Americans don’t plan to fully retire. That figure jumps to 31% among those not saving and falls to 12% among consistent savers, suggesting financial necessity, not personal choice, drives this decision.
Economic pressures have intensified these challenges. The recent cost of living crisis has pushed millions into ‘survival mode,’ worsening a difficult environment for saving amid rising costs and stagnant incomes. 77% of respondents cite personal living expenses as their top monthly expense, followed by personal spending (45%) and credit card debt payments (40%). Healthcare costs (31%) and emergency savings (29%) also featured prominently.
Self-employed Americans are more likely to face inconsistent income, and unlike traditional employees, lack access to employer-sponsored retirement plans, automatic enrollment, and employer matching contributions that typically boost retirement readiness. To offset lower savings, gig workers are more likely to claim Social Security early, potentially reducing lifetime retirement income.
Underutilized Solutions Available
Saving tools designed for self-employed workers remain vastly underutilized. Simplified Employee Pension (SEP) IRAs allow contributions up to 25% of income or $70,000 annually, significantly higher than traditional IRA limits of $7,000.
However, fewer than 13% of self-employed individuals in single-person businesses participate in any retirement plan, and even fewer use SEP IRAs, leaving billions in potential tax-advantaged savings unclaimed.
"SEP IRAs are designed for the gig economy. They offer flexibility for variable income and much higher contribution limits during profitable years," added Savova. "The key is to start small and as early as you possibly can. Even modest contributions add up significantly over time through the power of compound growth, translating to more wealth at retirement.”
Resources for Self-Employed Savers
Self-employed individuals looking to improve their retirement readiness can:
- Research SEP IRA options through financial institutions or online retirement providers.
- Begin with modest contributions. Even $50-100 monthly compounds significantly over decades.
- Create a flexible savings plan that balances consistent contributions with the ability to save more when possible.
- Use retirement calculators to model different contribution scenarios.
About PensionBee
PensionBee is a leading online retirement provider, helping people easily consolidate, manage, and grow their retirement savings. The company manages over $8 billion in assets and serves over 275,000 customers globally, with a focus on simplicity, transparency, and accessibility.
Survey Methodology*
Participation Details: The survey data was gathered and sent out by Attest between July 14, 2025, and July 16, 2025, to a total of 1,241 respondents across the 18 - 100 age groups. The margin of error for total respondents is +/-3.1 percentage points at the 95% confidence level. Audience data was weighted to represent the target population of U.S. adults age 18 or older. The data reveals how self-employed Americans save, spend, and think about retirement.
Voluntary Participation: Participation in the survey was voluntary. Respondents were free to decline participation or skip any questions they chose not to answer.
Media Contact:
Adela McVicar
SR PR Manager
Adela.mcvicar@pensionbee.com
PensionBee Inc. is registered with the Securities and Exchange Commission as an investment adviser. We do not provide in-person advice. PensionBee Inc (Delaware Registration Number SR20241105406 ) is located on 85 Broad Street, New York, New York, 10004.
