If you are a lady working for yourself – self-employed – there is a lot on your plate. Acqusition, own administration, own insurance … plus arrange your own retirement. Because even though a lot of entrepreneurs do what they enjoy most every day: there are very few who want to keep working until they are 85. So every reason to get retirement in order in a timely manner. But how well prepared are self-employed people really? Entrepreneurs and retirement: the numbers at a glance.
Entrepreneurs and retirement: what about insight?
Those who want insight into their retirement need to research, easy as that. Logging on to mijnpensioenoverzicht.nl, doing online research (here on Elfin of course ;-), talking to an advisor: loving it all. But the good news is: a lot of self-employed people are already doing this, as 52% of all self-employed people know how much money is needed to make a little fine living later.
Read more about retirement investing and the difficult terms like annual margin, pension gap and reserve margin here.
The bad news: the other 48% so do not. After all, they do not have a clear idea of exactly how much money they will need in old age. And that’s ostrich politics. “Whoever lives, whoever cares,” is not a good tactic when it comes to your retirement. Because those who don’t know how much they need, don’t know what to do for it now.
But how do you figure out exactly how much you need? Simple: take action. So log on to mijnpensioenoverzicht.nl, talk to a financial advisor or get information from friends or acquaintances. In fact, 22% of all self-employed people have yet to take that first step.
Retirement Stress
Retirement stress, you say? Many self-employed people fret quite a bit about retirement. Only one in five self-employed people (21%) are not at all concerned about whether she can still afford her current life as a pensionado.
And those other four in five self-employed people? Those (rightly) do worry about their pensions. 4 percent of all self-employed people are seriously worried and thus really sleep worse due to retirement stress. The remaining 75% mull retirement to a lesser extent. And we hate money stress, whether it’s retirement, being able to make ends meet or having a buffer. Action is the antidote of stress, so action!
Take action: read all about retirement investing as a self-employed person here!
Pension measures
Okay, so to work, but how? Although 2% of all self-employed people hoard as much as 40 to 50 percent of income, 38% still don’t set anything aside at all. And we think that’s a high percentage.
By comparison, this number is about the same among employed people (37%). But the need is a bit higher for self-employed workers, because they cannot count on a good collective bargaining agreement or an excellent pension plan through the boss. Many self-employed people may therefore be at risk of monetary distress as retirement age approaches.
All the while, saving or investing for retirement through an annuity is super easy these days. AND very advantageous (because: tax benefit). This is known to 60% of all self-employed people, but only 26% actually do something with that knowledge and actually build up a pension through an annuity.
Pension expectations
Many self-employed people also have legitimate concerns, but in general, many entrepreneurs do see their retirement as rosy. Indeed, more than half of them (55%) think they will be able to maintain the same lifestyle in old age as they do now.
And as many as one-third (33%) expect to retire before age 65. We grant them that wholeheartedly, but there seems to be a serious gap between expectations and reality. Take action, get this right for yourself and be grateful to yourself for being a classy granny! Continue reading? Do so here:
Calculate your annual margin and pension gap and get started.
