deVere CEO: Reeves’ plans for your pension “dangerous and misguided”. What can freelancers do?
As a freelancer, discover how to gain more control over your retirement savings and understand how potential UK pension policy changes may not be in the best interest of your retirement income
The UK Treasury is reportedly preparing to formalise an agreement that would see pension funds commit a significant slice of their assets—up to 10%—into private markets, with half of that required to be channelled into UK-based investments.
According to The Times, under the mooted plan, pension funds would commit to investing up to 10 per cent of their assets in fast-growing companies and infrastructure projects — up from 5 per cent previously. It also includes an agreement for half of the money pledged to be committed to British assets by 2030.
Plans by the UK Treasury to pressure UK pension funds into directing capital into domestic assets represent a serious threat to retirement incomes and investor confidence, warns Nigel Green, CEO of deVere Group, an independent financial advisory and asset management company.
There are also warnings, according to Green, that if firms do not voluntarily comply, the government may legislate to enforce the move.
“This is a dangerous and misguided policy for retirees,” says Nigel Green. “The purpose of a pension fund is to grow wealth for savers over the long term.”
Why is this important for freelancers?
The recent pronouncements from Green should resonate deeply with freelancers. As Green rightly warns, forcing pension funds to allocate significant portions of their portfolios based on political agendas, rather than optimal returns, poses a serious threat to retirement incomes and investor confidence.
This issue is particularly pertinent for the self-employed, who often bear the full responsibility for their pension planning and have a vested interest in maximising their long-term financial security.
Freelancers, by their very nature, are independent and entrepreneurial. They are accustomed to making their own decisions about their businesses and finances. Why should their retirement savings be any different? Of course, they can delegate trading and stock picking or even fund selection if they are not comfortable with making those types of decisions. However, not being informed about pension policy changes is something they can be on top of.
The prospect of hard-earned contributions being directed into potentially underperforming UK assets, simply to satisfy government targets, is a valid cause for concern.
As Green says, “The purpose of a pension fund is to grow wealth for savers over the long term. That means investing wherever the most compelling returns are likely to be found— and not according to government diktats designed to patch over domestic political pressures.”
Will pension fund managers feel they are losing control?
The core issue here is control and fiduciary duty. Pension fund managers have a fundamental responsibility to act in the best interests of their beneficiaries – the savers. Forcing them to prioritise geographical location over potential returns fundamentally undermines this principle.
As Green points out, “Forcing pension funds to tilt portfolios toward one geography regardless of market conditions could distort asset allocation, reduce diversification, and expose millions of future retirees to lower performance.” This risk is amplified for freelancers who may have less flexibility in their overall investment strategy compared to those in large company schemes.
How much are highly skilled freelancers putting aside for retirement?
In April, the results of the annual Freelancer Map Freelancer Study 2025 found that most freelancers participating were men (84%) from 73 countries (95% Europe), holding a university degree (81%), and predominantly freelancing in technical and managerial professions (85%). The study therefore, presents a relatively narrow but in-depth look into the business of 3,571 freelancers, who are doing quite well:
- 21% have an annual gross revenue of more than €175,000 and 16% have an annual gross profit of more than €125,000
- €7,498 is the average monthly income from freelance work
- The average hourly rate is €100, and only 14% have more than 20% of non-billable hours (of an average of 40 working hours per week)
- €1,136 is set aside on average each month for retirement, most often in securities, real estate, and public pension system, yet 49% are concerned about their financial situation in retirement
Freelancer pensions: Why more control matters
What can freelancers do to gain more say in where their pension contributions go? While the direct influence an individual freelancer can exert on large pension funds might seem limited, there are several avenues to explore:
Self-Invested Personal Pensions (SIPPs): route to pension control
This is arguably the most direct route to greater control. A SIPP empowers you to make your own investment decisions within a tax-efficient pension wrapper. You can select the specific funds, shares, or other assets that align with your risk tolerance and investment goals, rather than being tied to the decisions of a potentially government-influenced pension fund. While this requires a greater degree of financial literacy and ongoing management, it offers unparalleled control over your retirement savings.
Engage with providers to make your voice heard on pension investments
If you are part of a larger scheme or use a specific pension provider, don’t be a passive contributor. Understand their investment strategy and express your concerns about any potential shift towards mandated UK-centric investments. While individual voices may seem small, collective pressure from concerned savers can influence a provider’s stance and engagement with regulatory changes. Ask them directly about their fiduciary duty to maximise returns for their members and how they plan to navigate any government pressures.
Advocate for freelancer pension rights
Freelancers often belong to various professional organisations and industry bodies. These groups can act as a collective voice to raise concerns about pension policies that may negatively impact their members. Engaging with these organisations and encouraging them to advocate for the interests of self-employed savers can be a powerful way to influence policy discussions.
Stay informed
Keep abreast of developments in pension policy and express your opinions through consultations, social media, and engagement with your elected officials. The more awareness and public pressure there is against potentially detrimental policies, the greater the chance of influencing the outcome.
Get expert advice to tailor your pension strategy for more control
Consulting an independent financial advisor can provide personalised guidance on the best pension options for your individual circumstances. An advisor can help you understand the complexities of the pensions market and potential implications of policy changes. They should choose solutions that align with your long-term financial goals. They can also help you understand the nuances of SIPPs and other self-directed options.
Nigel Green’s warning serves as a reminder that pension savings are not a tool for short-term political manoeuvring. They represent the future financial security of individuals who have worked hard to build them.
Freelancers should seek greater control and independent guidance from experts over their pension investments to ensure their retirement nest eggs are given the best possible chance to grow, irrespective of government-imposed geographical constraints.
