Self employed persons and pension planning in the UK
Office for National Statistics (ONS) figures from 2018 show that there is an alarmingly low level of private pension saving among the self-employed.
Of self-employed people aged between 35 and 55, 45% have no private pension wealth to speak of (i.e. funds from defined benefit (DB) pensions, defined contribution (DC) pensions, personal pensions (including additional voluntary contributions), retained rights in DB and DC pensions), while among the over-55s, the number is higher but is still only a concerning 30% who have no private pension wealth.*
It is difficult to estimate just how many British expats are self-employed abroad or how many expat retirees were originally self-employed, but the ONS reports that there are almost 5 million self-employed people in the UK. For many of those with dreams of retirement abroad, neglecting to devise a pension strategy now could mean the dreams have no possibility of becoming a reality.
Address the situation now
If you are among the ranks of the self-employed, there is no point burying your head in the sand when it comes to pension planning. The sooner you begin saving the more time your pension pot will have to grow – even relatively modest monthly contributions can grow significantly over time.
The good news for self-employed pension savers is that there are so many options they can investigate; from regular savings plans and investment ISAs to Self-Invested Personal Pensions [SIPPs] and Discretionary Fund solutions, the self-employed have a wide-range of ways to plan for their future income and security.
Pensions advice from Blacktower Financial Management
Blacktower Financial Management can help expats with all aspects of their financial, pensions and retirement planning.
From SIPPs and QROPS transfer advice to other savings and investment strategies, the specialists at Blacktower can help.
As a fully regulated firm, we can help you plan your financial future whatever your country of origin and current country of residence. Contact us today to discuss a pension strategy that would work for you.
*https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/trendsinselfemploymentintheuk/2018-02-07 Accessed 08-07-2019
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.
As an expat your pension choices can seem labyrinthine. You may have been a member of one scheme over your entire career or perhaps you have paid into several smaller workplace schemes across different countries. Knowing what to do can seem like an enigma.