Retirement preparation of self-employed individuals during the COVID-19 crisis

“Financial setbacks during the COVID-19 crisis negatively impact perceived adequacy of retirement savings”

Many, but not all, self-employed people have been hit hard by the COVID-19 crisis. However, this crisis not only affects the current financial position of these individuals but may also affect their ability to prepare for an uncertain future. This study explores the extent to which self-employed individuals without personnel experienced negative implications of the COVID-19 crisis for their (retirement) saving behaviors. Furthermore, this study examines whether experiencing those financial setbacks affects perceived retirement savings adequacy. The data were collected via online surveys at the start of 2021.

Key Takeaways for the Industry

• The self-employed group is highly heterogeneous in terms of the impact of the COVID-19 crisis on their saving behaviors.
• Self-employed workers whose saving behaviors have been severely affected by the crisis foresee that this will still have consequences in the long run.