Investment solutions for the self-employed
It is no secret that the gap between those with access to affordable financial advice and those without has only gotten worse recent years, or that self-employed workers are at risk because the majority are not saving adequately for retirement.
According to research from Fidelity, almost two in three self-employed people admitted they had no pension savings, compared to only 32 per cent of self-employed people.
But aside from saving into a pension, what else can self-employed people do to boost their savings for the future?
One of our advisers, Jamie Smith, talks to FT Adviser about the importance of maintaining a suitable contingency fund. He explains: “This typically is a cash fund to cover any short-term needs or emergencies.
“Self-employed workers may be more inclined to maintain a higher contingency fund, particularly if they have earnings that can fluctuate. They should also, of course, ensure they have sufficient liquid funds to meet any tax liability.”
He adds: “For those self-employed small company workers, an important consideration might be around how they extract profits from their company as tax efficiently as possible in order to build up their longer-term savings.”
Read the full article on FT Adviser here.