Unlike their Dilbert cubicle counterparts, the self-employed aren’t automatically enrolled into a company pension. That can make financial planning for the self-employed quite difficult.
If they have a limited company they can make employer contributions into a SIPP and avoid all kinds of taxes like income tax, corporation tax and national insurance. But some self-employed might want to save into an ISA instead so they have more freedom around the age at which they can retire and if a good business opportunity comes along and all their savings are locked up in a pension they may have to let a good opportunity pass them by.
Financial planning for the self-employed can be expensive if the services of a financial advisor are used. Sometimes this is the best option if there are complicated matters to be dealt with but in many cases setting up regular savings that get a correct balance between enjoying now and saving enough for the future can be done through self-education or by using the services of a financial coach.
This case study video explains some of the challenges of financial planning for the self-employed. If you are interested in learning more, use the contact form at the bottom of this page.