Solo Self-Employed and the Quality of Their Pensions: Progress, Stagnation, and Policy Options

“Most solo self-employed individuals consider their pension plans to be sufficient, and pension preparation has improved slightly over time, yet most of them self remain vulnerable due to reliance on voluntary savings. Mandatory pension plans are supported by only a minority of the solo self-employed.”

What is the focus of the paper?

This paper analyzes how solo self-employed individuals in the Netherlands save for and assess their pensions, and how this evolved between 2021 and 2025. Using survey data collected among the solo self-employed, it examines pension accumulation, expectations, behavior, and trust in institutions. A vignette experiment evaluates attitudes toward different designs of mandatory pension saving schemes in 2025. The study is set against concerns about insufficient pension coverage among the self-employed and ongoing policy debates. It focuses on pension provisions beyond the public pension (AOW).

What are the key findings?

There is modest progress: more self-employed individuals save and take measures, mainly via savings and investments. However, about 7% have no pension arrangements at all. Still, most expect a comfortable retirement (59%) and have limited financial worries. Outcomes differ widely by wealth level of the self-employed, with higher wealth linked to greater confidence in a comfortable retirement. Voluntary pension savings are the most mentioned pension pillar. This pillar does not cover longevity or inflation risks though if no further action is taken. Continued work beyond retirement age serves as an additional income source for some. Trust in financial institutions has increased to a limited degree over time. Support for mandatory pension schemes remains low, peaking at about 33%, even under the most flexible designs of the contract (e.g., allowing a temporary stop of premium payment, or earlier withdrawal of accumulated assets).

What are the implications?

• Reliance on flexible savings exposes many to longevity and inflation risks despite growing pension assets.
• Mandatory pension schemes face limited acceptance among the solo self-employed, regardless of the level of flexibility in catering to the specific circumstances of the solo self-employed (irregular income or small financial buffers to cover set-backs).
• Vulnerable groups among the self-employed, including singles and involuntary self-employed individuals, require targeted policy attention.