Be The Boss Of Your Retirement

 

As time goes on, more people are choosing to work for themselves. Whether it’s for the flexibility of setting your own hours or the independence of being your own boss, self-employment is becoming increasingly popular.

However, it’s important to be aware that along with its benefits, self-employment also brings with it challenges too – especially when it comes to retirement.

If you’re self-employed and wondering how to secure your financial future, you’re not alone. Without the support of an employer’s pension scheme, the prospect of being able to set yourself up for a comfortable retirement can be a big worry.

But it shouldn’t be. There are ways to set yourself up for a comfortable retirement.

Here’s our top five tips:

1. Start Early:

The earlier you start planning and saving for retirement, the better off you’re likely to be. It may sound self-explanatory, but time is your biggest asset when it comes to saving for your retirement. Even small, consistent contributions over a long period can grow significantly and make a big difference in your savings.  And remember every pound saved now brings you closer to the retirement you dream of.

2. Set Up a Pension Plan:

When you’re self-employed, the responsibility of setting up your retirement fund falls squarely on your shoulders. Unlike those with a fixed job, there’s no handy employer pension scheme waiting for you. But fear not, Self-Invested Personal Pensions (or SIPPs as they are called) can be a great alternative.

These schemes offer tax benefits and give you control over how your retirement funds are invested. But as always, before investing, you may want to speak with a qualified professional Financial Adviser like Joslin Rhodes to make certain this is your best option.

3. Plan for Healthcare Costs:

It’s vital to plan for unexpected events that could affect both your finances and your well-being. Healthcare expenses, in particular care fees, can be a significant burden in retirement, so it’s essential to plan for them. If needed, you might consider adjusting your retirement contributions to save more specifically for healthcare costs.

4. Get an idea of what you want in retirement:

It’s important to have a clear idea of what you want in retirement. Some people are eager to retire and have everything planned out, while others enjoy their work and don’t feel the urgency to retire. But regardless of your situation, saving money is crucial for your future security. Setting retirement goals gives you something to work towards and adds purpose to your financial planning. If you need help seeing the big picture and knowing what you’re really saving for, our expert pension and retirement specialists are on hand to help.

5. Have an exit plan:

Having a plan for how you’ll exit your business is an extra step unique to those who are self-employed, but it’s key to understanding your retirement outlook. Whether you’re thinking about going straight into full retirement or considering passing your business on, you need to know what you want to do with your business. You might want to pass it down to your family or you might want to sell it on. But, whatever you decide, don’t wait until retirement is around the corner, as this is definitely not a simple tick box exercise. You need to start working on your exit strategy early to make sure you’re clear on the next steps for both you and your business.

Hopefully this article has shed some light on what you need to do (and when) to ensure you’re set up for success in retirement. But if you would like a helpful hand in designing your life after work, our expert team of Lifestyle Financial Planners are here to help. Get in touch today for a free, no-obligation consultation.

Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People