Self-Employed workers are not saving enough for retirement

07 Nov 2019

Only a quarter of self-employed workers are contributing savings towards a pension fund – Recent study done by DWP (dep of work and pensions)

People are generally not very good at saving, especially for retirement. 

Employed workers have a slight advantage, as often, company pension contributions are compulsory and taken directly from salaries. This forced retirement savings method, is for many the only retirement savings an employed person is contributing towards.

Self-employed people on the other hand have no compulsory savings plans in place. The study shows that 75% are aware of the importance of retirement savings, but still haven’t committed to saving. Their capital is tied up in their business and they will start saving once it is established and there is cash flow.

Unfortunatly, the longer you wait, the more you would have to contribute towards retirement.

What could self employed workers do to start saving for retirement?

  • First and foremost, seek the advice of a financial adviser who can tailor make a savings plan for you according to your individual financial needs and circumstances.
  • Commit to a private pension plan – offered by most pension providers and they have low instalments 
  • Revise your budget and see where you can cut some corners to allow more funds for your retirement plan
  • Once you have paid off a loan or car, house etc. divert the same amount into your pension pot. You are already spending the amount and it is a great way to boost your retirement fund
  • Savings plans are also a good way to save up for retirement, and there are incentives from the government to encourage saving

Speak to your deVere Acuma adviser about all the retirement savings options that are available to you. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.