Retirement saving for the self-employed
A study by the Institute for Fiscal Studies found that only 16% of the UK’s business owners, freelancers and sole traders have a pension.
This statistic means that there are more than 3.5 million self-employed workers that do not have any savings for later on in life.
While lots of people are opting to work for themselves, due to the many benefits it presents, being self-employed also has its downsides. Those who are employed can boost their retirement savings through auto enrolment – a scheme which requires companies to enrol their staff into a workplace pension and contribute towards it. For the self-employed, however, saving for retirement isn’t quite as easy with many people put off by excessive administration, variable incomes, too much jargon and the time and effort that needs to be invested.
The good news is there are options out there for business owners and the self-employed – and you can also get a 25% tax top up from the UK Government.
When choosing a pension plan it’s important to think about the following factors:
Charges: Make note of any charges on pension plans and these will reduce the amount that is in your savings pot
Flexibility: Month to month your income may vary so it could be a good idea to look at plans which offer flexibility when it comes to minimum payments
Choice: Some plans offer more choices than others when it comes to investments. Look at the options available and consider how they will help you grow your pension savings
Convenience: Once you’ve set your pension up it’s important to keep track of how it’s performing. Check whether providers give you access to monitor and manage it easily.
If you want to save time and take the stress out of setting up a pension plan, we are here to help. One of our pension experts will work with you to discuss your options and help you choose the one that works best. Arrange your free consultation to get started.
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