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Investment Times

The benefits of being the boss, the back-up of the safety net

| 14 December 2018 | A A A
The benefits of being the boss, the back-up of the safety net

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

You’ve got no boss to answer to and no corporate bureaucracy to navigate. You probably work more hours than ever, but you love what you do and you’ve got the flexibility to work when it suits you.

You reap the rewards of a job well done – financially and mentally. And with all the responsibility to make decisions for your business, comes the ability to shape what your future might look like.

But with all of these positives do come some pitfalls.

Millions set to retire with no pension

When running your own business, you probably have enough on your plate without the worry of what might happen when you retire. You might consider a pension an expense you can do without, especially when starting out. But the longer you leave it, the more detrimental it’ll be to your retirement.

Millions of self-employed head towards retirement age with no pension wealth at all; 45% of 35 to 54 year olds and 30% of the over 55s have no pension savings. Even more shocking, there’s no immediate prospect of the situation improving, with less than one-in-ten contributing to a pension currently.

Without a pension, your retirement could suffer.

Protections you might need

  • Income protection – income if you get ill
  • Critical illness protection – gives lump sum payments if you get seriously ill
  • Partnership protection – helps the business survive financially if one of the partners dies
  • Key person insurance – gives a lump sum if someone in a key role dies

Your retirement is one of the most important things you ever need to plan for

A financial adviser can help you get a solid retirement plan together. They’ll save you time, minimise tax and give you peace of mind for your future.

You haven't only left behind a stable salary

You might be paying yourself the right amount, but is that enough?

Without any other benefits, how would your business hold up if you had to go on long-term sick leave? Would you be able to maintain the same lifestyle?

Employed people may enjoy a reliable salary as well as things like maternity and paternity pay, sickness pay and employee pension schemes. It all adds up.

If you’ve left employment, you’ve also left these types of benefits. But you don’t need to go back to working for someone else to make sure you’re covered.

A financial adviser can act as a benefit consultant for you, and make sure you’ve got a safety net should anything happen. They’ll look at income and critical illness protection as replacements for sick pay. They’ll also consider things like partnership protection, and key person insurance to protect the business.

Your safety net

If it’s time to start thinking about your safety net, why not talk to us about how we can help protect you, and your business?

Pushed for time? Book a consultation and we’ll call you at a time that fits.

Book consultation

Or call us on 0117 317 1690 (Mon – Fri: 8:30am – 6pm).

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The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.