The best ways to save for retirement when you’re self-employed

March 03, 2021

Saving for Retirement

Anyone who sets up their company knows that it’s all about the hustle. When you go self-employed, you are taking on the responsibility of chasing down contracts, making the best work possible to sell yourself and the brand you’ve created, and you are always thinking about what the next step is for your business. 

You may know that it’s all about the future, but you might not be thinking as far ahead as planning for your retirement. Well, one of the things you learn when you start your own business is that nobody is going to do it for you, and that goes double for thinking about how you’re going to be set up when you call it quits.

With that in mind, here are a few ideas to help you start thinking about how you can start saving for your well-earned retirement, however far away that may be.

Start by saving now

If you’re reading this and you haven’t started to set some funds away for your retirement, then it’s time to change that. It’s never too early to start planning for your retirement, for the simple reason that every penny saved now will be there for you further down the line

With the market as unpredictable as it is right now thanks to world events, it’s more important than ever to make sure that you have some savings waiting for you. Think about how routinely we face situations where we need to have access to some emergency funds, then think about what that situation would be like if you didn’t have the security of another month’s earnings on the way.

Make a plan

Anyone who sets up their company knows that it’s all about the hustle. When you go self-employed, you are taking on the responsibility of chasing down contracts, making the best work possible to sell yourself and the brand you’ve created, and you are always thinking about what the next step is for your business. 

You may know that it’s all about the future, but you might not be thinking as far ahead as planning for your retirement. Well, one of the things you learn when you start your own business is that nobody is going to do it for you, and that goes double for thinking about how you’re going to be set up when you call it quits.

With that in mind, here are a few ideas to help you start thinking about how you can start saving for your well-earned retirement, however far away that may be.

Talk to the professionals

Everyone comes to the realization that there’s only so much forecasting you can do when it comes to your financial situation, not to mention the financial market, so it makes a huge amount of sense to have a professional on your side when you’re planning for the future. A good actuary or financial advisor can make sure that you’re making the biggest possible savings at the lowest possible cost to you and can talk you through a range of different options to make sure that you find the right fit. 

Actuarial firms have made it their mission to help self-employed business owners make sure that they can save for their future without paying a huge amount of tax thanks to their Personal Defined Benefit Plan. They can take you through a range of different options to make sure that you find your own personal defined benefit plan for your business.

Consider investing in bonds

If you’re thinking about investing to help save for retirement, bonds have always been one of the most popular choices due to their security. Essentially, you’re loaning the government your money until the bond matures, at which point you’ll get your principal investment back, plus the interest that you have accumulated over the course of the loan. 

There are a range of different options out there, with the higher yield bonds carrying more risk and vice versa. Conservative bond investment may not make you incredibly wealthy, but it can be a very solid addition to your savings stream as you plan ahead for the future.

Property investment can be a very safe bet

Anyone will tell you that one of the best ways to make sure that you live comfortably in retirement is to make sure that you pay off your mortgage, to make sure that your home is entirely your own and any bills are kept to a minimum. However, property investment obviously doesn’t stop there. 

Much like starting your own business, this isn’t a process to just dive into without doing an awful lot of research, but buying a property to rent, or restoring a property to make a profit on a sale, is a time-honored way of adding to your savings. However, the housing market can be as unpredictable as the stock market and it’s certainly proven to be prone to fluctuation over the last year, so think carefully about taking this step.

More must-read stories from Enterprise League:

Related Articles