In this investigation, we explored the saving practices and perceived future pension adequacy of self-employed workers aged 15-65 in Germany (N = 702) and the Netherlands (N = 655). Of particular interest was whether respondents felt that they voluntarily chose to become self-employed, or whether they felt “forced” to enter self-employment due to economic or labor market pressures. Findings revealed that some 25 percent of workers were driven into self-employment out of necessity. Moreover, forced self-employed individuals were found to be less likely to save for retirement than their voluntary self-employed counterparts, and they envisioned a less optimistic future pension
scenario for themselves. Additional analyses focused on the demographic and psychological
dimensions that underlie saving practices and perceptions of pension adequacy. Discussion
focuses on the need to change institutional practices and public policies that place self-employed individuals at a disadvantage—particularly those who are driven into self employment based on economic pressures and a lack of opportunities in the traditional labor market.