The fact you are looking for, or already receiving advice from us would indicate that a career in financial planning is not for you. We’ve designed our resource centre so that you can dip into subjects or linger on those that interest you most. Nothing beats personal advice in our view but we hope you find the information available here useful.
4.3 million people don’t qualify for auto enrolment
There are lots of you
4.3 million people are officially self-employed in the UK. Over half a million of those opted for self-employment since the recession started in 2008. That means that today, nearly one in seven people in the UK workforce work for themselves.
Auto enrolment is not designed for you
Auto enrolment is great for employees but not for the self-employed who clearly don’t benefit as they don’t have an employer who will make a contribution to their pension fund.
You have conflicting priorities
The self-employed have to juggle a lot if issues and make decisions that employed people don’t. The strain is felt most acutely when considering personal finances.
- A recent survey of the self-employed found that nearly half have no private pension plan at all.
- 30 per cent of people in the survey also indicated that they will never retire
Everyone knows that the latter point is unlikely to happen in reality. So, the big issues for the self-employed are:
- The practical difficulties of distinguishing between business and personal finances
- The frequent conflict between investing in the business or saving for retirement
This comes into particularly sharp focus when the economy has been in recession for so long.
We think that the self-employed should consider pension planning in the same way they think about any investment:
- How much should I invest?
- What is my potential return?
- Is the risk level acceptable?
- Do I gain any subsidiary benefits such as tax advantages etc.?
- review the revenue and expenditure for the last year and compare it to your forecasts for the next year
- make a judgement of the monthly income you would need at your preferred retirement age
- sit down with us to develop a retirement strategy designed specifically for the self-employed