If you work for yourself and do not take sufficient steps to invest for later life, you risk an uncertain financial future and may even court the possibility of running out of money at some point in your retirement.
Increasing numbers of successful individuals are forging their own path in life and forsaking conventional career routes, along with conventional pension payment schemes, in favour of the freedoms and innovations of self-employment.
Unfortunately, some freelancers and business owners are so focused on their work at hand that they neglect the necessity of pension planning – an approach that may prove detrimental in the long-run.
Self employed persons and pension planning in the UK
Office for National Statistics (ONS) figures from 2018 show that there is an alarmingly low level of private pension saving among the self-employed.
Of self-employed people aged between 35 and 55, 45% have no private pension wealth to speak of (i.e. funds from defined benefit (DB) pensions, defined contribution (DC) pensions, personal pensions (including additional voluntary contributions), retained rights in DB and DC pensions), while among the over-55s, the number is higher but is still only a concerning 30% who have no private pension wealth.*
It is difficult to estimate just how many British expats are self-employed abroad or how many expat retirees were originally self-employed, but the ONS reports that there are almost 5 million self-employed people in the UK. For many of those with dreams of retirement abroad, neglecting to devise a pension strategy now could mean the dreams have no possibility of becoming a reality.
Address the situation now
If you are among the ranks of the self-employed, there is no point burying your head in the sand when it comes to pension planning. The sooner you begin saving the more time your pension pot will have to grow – even relatively modest monthly contributions can grow significantly over time.
The good news for self-employed pension savers is that there are so many options they can investigate; from regular savings plans and investment ISAs to Self-Invested Personal Pensions [SIPPs] and Discretionary Fund solutions, the self-employed have a wide-range of ways to plan for their future income and security.
Pensions advice from Blacktower Financial Management
Blacktower Financial Management can help expats with all aspects of their financial, pensions and retirement planning.
From SIPPs and QROPS transfer advice to other savings and investment strategies, the specialists at Blacktower can help.
As a fully regulated firm, we can help you plan your financial future whatever your country of origin and current country of residence. Contact us today to discuss a pension strategy that would work for you.
*https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/trendsinselfemploymentintheuk/2018-02-07 Accessed 08-07-2019
The above article was kindly provided by Blacktower Financial Management Group and originally posted at: https://www.blacktowerfm.com/news/702-retirement-planning-and-qrops-advice-for-expats