Self-Employed Advised to Plan for Retirement
It is the case that many self-employed workers do not have sufficient pension saving plans in place to provide an income for their retirement. While many employed workers have had the opportunity of auto-enrolment workplace pension schemes, this initiative does not include the self-employed, meaning they need to set up their own pension savings plan to ensure they have a sufficient income in retirement.
For many self-employed workers this can be a challenging task, especially as running a One Man HVAC Business is a very challenging task. Variable income plays a big part in why self-employed workers are unable to commit to monthly retirement savings. Many self-employed people work in construction. They have so many things to think about like construction insurance, so they don’t have time to think about pensions. Not knowing what they have coming in each month, makes it much harder to calculate what they can afford to save each month; and, with the absence of employer contributions, their pension pots may grow slower than someone who is employed.
If you are self-employed it is good practice to seek pension advice from an independent financial advisor to help you understand and determine your financial situation and help you to implement pension planning strategies that will help you reach your retirement income goals. There are many advisors that you could consider, however, we would recommend using one like QuestIRA.
At Castlegate Financial Management, a firm of Chartered Financial Planners, our experienced team of independent financial advisors provide pension advice in Lincoln and across the East Midlands. We regularly work with self-employed workers to provide support and guidance to ensure they have the best retirement planning strategies in place for their personal circumstances and financial objectives.
Our independent financial advisors provide pension advice in Lincoln and the surrounding areas to ensure you have the most efficient strategies in place and help you choose the most suitable type of pension for your requirements.
As a self-employed worker you will still be eligible to claim a state pension, but for many this will not provide an adequate income for their later years – making it imperative for the self-employed to make additional plans for their retirement. Also, it is important that the state pension is not relied upon as in the future it may not exist in the capacity it does today.
Types of Pensions for the Self-Employed
- A Personal Pension Plan – A personal pension plan helps you save money for retirement and is available to any UK resident who is under 75 years of age.
- A Stakeholder Pension Scheme (SP) – A Stakeholder Pension is a type of personal pension plan designed to provide an optional lump sum and income in retirement.
- A Self Invested Personal Pension (SIPP) – Unlike a standard personal pension, a SIPP holder has a much wider choice of assets to invest in, each of which can be selected to meet the individual’s personal circumstances and requirements.
Each of the different types of pension plans have their benefits and the one that is best suited to your requirements will depend on your personal and financial circumstances. It is recommended that you seek advice from a regulated independent financial advisor such as Castlegate, who provide pension advice in Lincoln and across the East Midlands.
If you are looking for pension advice in Lincoln or across the East Midlands for support and guidance with retirement planning, please do not hesitate to get in touch to talk about the most appropriate investments products for your personal circumstances and financial objectives.