Finance Shan? Schutte · 18 May 2018
Pensions: How the self-employed can navigate their financial future with more certainty
Of the 4.8 million self-employed Brits, 45% between the ages of 35 and 55 don’t have a private pension. In comparison, only 16% of employees are in the same situation. Where employers are obliged to automatically enrol their staff onto a pension scheme, it’s up to the self-employed to start one themselves. Choosing one can be tricky when you have an irregular income pattern, but there are unique benefits to be had. Jamie’smith-Thompson, managing director of Portafina, explained: Ive been a sole trader and it can be tough. Well-meaning friends talking about how they wished they had the freedom of being their own boss and ignoring the huge uncertainty that can come with being self-employed. When’s the next job coming in? Will clients pay on time? Will I have enough to get by in the future? pensions are extremely powerful and if yours is properly managed you can look to your financial future with much more certainty. And it could mean even more flexibility and freedom when it comes to the choices you have in life. it just doesnt make sense to ignore or neglect your pension, especially if you are self-employed. And when it’s so easy to find out how your pension is doing and how to get it working as hard as it can for you. To help Brits decide whether to go the way of private pensions, Smith-Thompson highlighted some of the advantages, beginning with tax breaks.
ABOUT THE EXPERTShan? Schutte
Shan? Schutte is the deputy editor of Real Business, with a particular specialism in employment and business law, human resources, information technology and sales/marketing.