The benefits of being the boss, retirement & the back-up of the safety net

There are so many benefits to being self-employed. From being your own boss through to the flexibility to work in your own time. Though it may sometimes feel like being self-employed is more work, you reap the rewards of a job well done – financially and mentally.

But when you’ve got your head down doing what you love, it’s easy to miss some of the pitfalls which may come your way. Retirement may feel a long way off right now but it’s even more important for self-employed people to start planning early.

Millions set to retire with no pension

Paying into a pension might be an expense you think you can do without. Especially when your business is starting out and costs are tighter, it’s easy to make your pension the first cost to cut. But the longer you leave it, the harder it becomes to recover.

A huge number of self-employed people cruise towards retirement with no pension wealth at all. In fact, 45% of self-employed 35 to 54 year olds and 30% of the over 55s have no pension savings. What’s more, less than one-in-ten are contributing to a pension so for many of those people, the situation is unlikely to improve.

It’s safe to say, without a pension, your retirement could suffer. Protection you might need

• Income protection – income if you get ill and are unable to work
• Critical illness protection – gives lump sum payments if you get seriously ill and are unable to work for a long period
• Partnership protection – helps the business survive financially if one of the partners dies
• Key person insurance – gives a lump sum if someone in a key role dies

Your retirement is one of the most important things you ever need to plan for

If you’re not confident in your retirement plan, an adviser can help. They’ll save you time, help you plan your income and expenditure over time, minimise tax and (above all) give you peace of mind for your future.

You haven't only left behind a stable salary

You might be paying yourself the right amount, but is that enough?

Without the benefits you might find in a larger organisation as an employee, what would you do if you had to go on long-term sick leave? How would you get the income to maintain the same lifestyle?

If you’ve left employment, you’ve also left benefits such as; maternity and paternity pay, sickness pay and employee pension schemes. It all adds up. But you don’t need to go back to that life to make sure you’re covered.

A financial adviser can act as a consultant and help you put a company-benefits-style safety net in place. They’ll help you choose appropriate solutions such as; income and critical illness protection, partnership protection and key person insurance to protect the business.

Your safety net

If it’s time to start thinking about your safety net, why not talk to us about how we can help protect you, and your business? Pushed for time? Book a consultation and we’ll call you at a time that fits.

BOOK CONSULTATION

Or call us on 0117 317 1690 (Mon – Fri: 8:30am – 6pm).

This article is not personal advice. Monies in a pension can’t normally be accessed before age 55 (57 from 2028). Investments can go down in value as well as up, so you could get back less than you invest. If you are unsure about the suitability of an investment please contact us for advice.

IMPORTANT INFORMATION - Hargreaves Lansdown Advisory Services Ltd, One College Square South, Anchor Road, Bristol, BS1 5HL, authorised and regulated by the Financial Conduct Authority. FCA Register number 189627, see registration details. Registered in England and Wales. Registration number: 3509545.