Self-employed need better retirement strategy
The self-employed are not taking adequate steps to prepare for their future retirement, according to Aegon's global study.
The Aegon Center for Longevity and Retirement and the Transamerica Centre for Retirement Studies report found that although many of those who were self-employed planned to fully retire at an older age, have a flexible vision of their own retirement and a transition, many of them were not undertaking the steps to plan accordingly.
The study, which surveyed self-employed people in 15 countries in Europe, Australia, the Americas and Asia, also found that only 60 per cent of respondents had a retirement strategy, while only 13 per cent had it written down.
Additionally, according to an executive director of the Aegon Center for Longevity and Retirement and president of Transamerica Centre for Retirement Studies, Catherine Collinson, the self-employed faced a unique set of challenges.
They included irregular incomes and a lack of access to employer-sponsored retirement benefits.
"For the self-employed, preparing for retirement requires a long-term do-it-yourself approach which many are not undertaking," Collinson said.
Aegon Centre for Longevity and Retirement's manager, Mike Mansfield, added: "The self-employed offer an exciting vision of a flexible retirement which can bring continued income and enjoyment, a vision which should be an inspiration for all.
"However, this vision can only be achieved with adequate planning and preparation."
AUTHOR
Oksana Patron
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
