Just 5% of the UK’s growing cohort of side hustlers save any of their earnings into a pension, despite new PensionBee research showing that doing so throughout your working life could boost your retirement pot by up to £154,000.
The UK’s side hustle economy has reached record highs. Almost half (49%) of UK adults surveyed reported that they have a side hustle, with a further 12% having had one in the last two years (table 2). For most, the amounts involved are modest, with 81% of side hustlers earning less than £500 a month from their side activity (table 3).
Extra income - but rarely into retirement
The extra income is rarely being put to work for the long term. The top uses of side hustle earnings are day-to-day living costs (39%) and treating themselves (31%), followed by building up savings (23%) and paying off debt (19%) (table 4). Paying into a pension came last, with just 5% of side hustlers using their earnings to top up their retirement savings.
Asked why they don't contribute, a quarter (25%) said they already have a pension through their main job and don't feel they need to do anything extra (table 5). This could be a costly misconception, given that just 9% of working age Brits are on track for a comfortable retirement on current Auto-Enrolment minimums. A further 22% said they can't afford to contribute as everything goes on essentials, and 20% said their side hustle income is too unpredictable to commit to regular contributions.
The £154,000 opportunity
PensionBee modelling shows the scale of what is being left on the table. Saving the equivalent of the £1,000 annual tax-free trading allowance - a tax exemption that lets you earn up to £1,000 of gross income per tax year from small side hustles, hobbies, or casual jobs completely tax-free - into a personal pension could grow to over £154,000 by retirement.
Maike Currie, VP Personal Finance at PensionBee, commented:
"For millions of people, a side hustle has become a lifeline against the rising cost of living, but the extra income is too often swallowed up by day-to-day spending or held in places that won't deliver the long-term growth a pension can. This is a missed opportunity for building much-needed retirement wealth.
“Arguably, the most worrying finding is that a quarter of side hustlers believe their workplace pension alone will be enough. The reality is that Auto-Enrolment minimums are not enough to fund a comfortable retirement while millions of 'invisible' workers - including carers and the self-employed - are excluded from the system altogether.
"PensionBee is calling for reform that reflects how people actually work today, including expanding Auto-Enrolment to cover lower earners and using Self-Assessment to nudge the self-employed to start saving. In the meantime, anyone with a side hustle should take control today by opening a personal pension and making the most of the valuable government top up in the form of tax relief available on contributions. Even modest amounts redirected each month can compound into substantial sums by the time you stop working."
Four tips for side hustlers saving for retirement
- Open a personal pension or SIPP. These can be set up online in minutes, with no employer required.
- Claim the tax relief. For every £80 a basic-rate taxpayer contributes to a pension, the government adds £20, turning it into £100. Higher and additional-rate taxpayers can usually claim even more tax relief through Self Assessment.
- Set up a regular monthly contribution. A small amount paid in consistently can mean contributions are still possible even if your side hustle income is irregular.
- Use the 31 January tax deadline as a nudge. If you’re already filing Self-Assessment, it’s a natural moment to think about what comes next for that income.
Notes to editors
Data based on a nationally representative survey of 1,000 UK adults, June 2026.
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