Posted on: 17th January 2020
The number of women transitioning to self-employment is growing, which can make knowing how to best save forconfusing. According to recent data from the Office for National Statistics, 1.7 million women in the UK are currently self-employed. Analysis from Fidelity International’s “Generation Self-Employed” report shows that 96 per cent have chosen this route to gain control over their careers.
When it comes to planning for retirement, however, it seems that women under their own employment are falling way behind those who are employed by a company. Fidelity’s research reveals that 71 per cent of self-employed women do not have aof any sorts. Comparatively, only 35 per cent of women in employment say they don’t have a pension.
Emma-Lou Montgomery, associate director for Personal Investing at Fidelity International, said: “More than 10 million people now benefit from being automatically enrolled into a workplace pension. However, choosing to become your own boss means assuming the responsibility of planning for retirement yourself. And while the number of female entrepreneurs is on the rise, our figures suggest many have yet to consider what this means for their finances.”
Why aren’t self-employed women saving for the future?
73 per cent of women who work for themselves but cannot afford to save for the future put it down to affordability. At the same time, 11 per cent say they don’t know how to go about it. Those who work for themselves do not have access to a company pension scheme. However, personalare still available.
Personal pensions are defined contribution, or money purchase pension schemes, designed where you invest your money. How much you end up with when it comes to retirement is dependent on how much you have contributed over the years. It also depends on how well your investments perform.
You needn’t being with a lump sum. There are many pensions that allow you to pay in just a small amount each month if you cannot afford anymore. If you find yourself struggling to put aside money to invest, it may be time to rethink your outgoings. If you can make any reductions, you can better save into your pension.
are for everyone
Whether you are self-employed, or you work for a company, it helps to determine how much income you would like to receive when you retire. This will help you better calculate how much you need to put away each month while you work.
Seek financial advice
Speaking with an IFA can help you determine what put away each month in a way that works for you now and in the future. This is where get in touch to speak to a member of our team.comes in. If you would like to learn more about how you can save for retirement,