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Millions of self-employed workers will face a difficult retirement after "under-saving significantly" compared to their employed counterparts, research from the Scottish Widows bank shows.

Only a third of self-employed people are saving an adequate amount for their future while a shocking 38 per cent are not contributing to any savings or pension scheme at all, the bank claims.

Yet higher mortgage debt and monthly mortgage debts are seen to impact upon the ability of self-employed people to save, according to the report.

Entrepreneurs are also not as youthful as we may think with over 58 per cent of self-employed people aged over 50 years old – a group dubbed "grantrepreneurs".

Ian Naismith, head of pensions market development at Scottish Widows, said: "The position of the self-employed is a particular concern. Losing out on employer contributions, including in the proposed personal accounts, means that it is imperative they have a savings plan in place for their retirement."

Reflecting on the growing trend of "grantrepreneurs", Mr Naismith said: "It is understandable that as people get older and have greater experience in their profession that they would want to opt for a more flexible lifestyle, but the financial implications of self-employment are still profound."

There are positives to being your own boss, however, including increased motivation to work. The survey showed that although nearly half of all employed people would quit work tomorrow if they could, only 36 per of self-employed workers would take the opportunity. Self-employed workers were also prepared to work until they were an average age of 67 - two years longer than those employed.