Self employed? Ensure you plan ahead.
According to recent reports, people who opt to work for themselves are running the risk of serious financial shortfalls when reaching the age of retirement. More people than ever are attracted to the prospect of becoming their own boss, however, without careful planning, this newly found financial freedom could become more of a hindrance, than a blessing.
Analysts suggest that self-employed individuals are not taking the necessary provisions, to allocate adequate funds for retirement. The self employed demographic is amongst the most concerning group for many consumer and financial bodies.
One of first pension societies to recognise this trend has taken numerous steps in order to make such individuals aware of the situation. In order to get a better understanding of the problem, help lines were set up and information packs were distributed, the response to which was reportedly overwhelming.
The report further suggests, that self-employed individuals who are close to their retirement date, are sourcing loans as a means to bridge the financial gap. This strategy is both impractical and potentially harmful, as it will actually increase a person’s financial commitments, at a time when money is tight.
Ensuring you have a solid pension plan should form a primary part of any person’s financial planning, and it is advisable to seek professional and reliable advice when doing so.
