Important Pension Information for Freelance Workers
24th January 2019 Uncategorised
Freelance work is increasing in popularity, and it is easy to see why. Freelancing brings so many benefits, mainly a great deal of flexibility with your work. It also poses a few unique challenges, however, with one of these being saving into a pension. It is important that if you are self-employed that you are aware of your pension options so that you can start saving towards a retirement that will allow you to enjoy your retirement how you wish without money being a huge concern. With this in mind, here is all that you need to know about your pension if you work freelance.
Those that are self-employed are entitled to the State Pension like everyone else – for 2018-19, this is £164.34 per week. This is unlikely to be enough on its own to maintain the standard of living that you would like, which is why you should plan for the future.
Saving into a Personal Pension
Being your own boss is one of the most enticing factors about being a freelance worker, but this also means that you do not have an employer that is adding into your pension pot which makes a big difference to an employed worker’s retirement funds. There are still tax breaks to take advantage of though, as if you are a basic-rate taxpayer, the Government will add £25 for every £100 you pay into your personal pension.
Finding Trusted Resources
This means that the earlier that you start contributing to your savings, the better. Unfortunately, many freelance workers are confused over how pensions work which means that a large percentage do not have a plan in place. Resources like Portafina are highly helpful as here you can learn everything that you need to know about different types of pensions, including both State and personal pensions. Self-employed workers can find out everything that they need to know at Portafina Discovery to help them make an intelligent decision based on their own circumstances.
Importance of Pension Pots
It can be hard to contribute to a pension pot when you are a freelance worker as the amount of money that you earn each month is likely to fluctuate which can make it hard to plan your finances. Additionally, bills, financial commitments and the high cost of living can make it hard to set aside any money at all each month in some cases.
It is still important to plan for the future, however, if you want to be able to retire at a reasonable age and be able to enjoy these important years as you wish. This is why you should start making contributions as early as possible and add a small amount as often as you can.
Freelancers should also follow Portafina for updates, new from the industry and tips of how to get their finances in order. Visit their Facebook, Twitter, LinkedIn and YouTube channel for more information. The Portafina jobs page is also worth visiting if you are considering embarking on an exciting new career.