‘There are around 5 million self-employed people in the UK which amounts to over 15 percent of the work force. The sector is grown further with the 1 million plus director led limited companies without employees and, it’s predicted, that these numbers will continue to increase.
There are many advantages of ‘being your own boss’ but one major downside is pension saving.
The inception of Auto-Enrolment, where qualifying employees are automatically enrolled into a pension scheme by their employer, has seen millions of people begin saving for their future, often for the first time. This saving has been encouraged by compulsory employer contributions.
This legislation has been heralded as a huge success, but the self-employed and solo directors are not included and there is now a huge disparity in pension savings with employees far more likely to save than their independent counterparts.
We believe that this disparity is because employees have a monthly pay cheque and can therefore commit to a monthly Direct Debit whereas the ‘solo’ sector typically has good weeks and bad weeks and may struggle to commit regularly. Hopefully the good weeks outweigh the bad!
Like so many other sectors in the UK our Financial Services industry simply doesn’t understand what it’s like to run your own business. Instead we are offered products and services that are simply not fit for purpose.
With all of this in mind Your Business Community (YBC) members can now start to save into a pension tailor made for their needs, Your Solo Pension.
A Direct Debit isn’t required and contributions can be made whenever you want which means you can save for your future on your terms.
As ‘Your Solo Pension’ can be accessed without advice it’s a more straightforward way to start to invest in your financial future.
However, it’s important to bear in mind that if your situation or the decisions you need to make are more complex you may need to seek professional advice.
Also, as you’re making the decision to decide whether the ‘Your Solo Pension‘ is right for you it’s important to make sure that you understand the costs of this scheme and the investment selections you make
We all need to save for our futures and saving into Your Solo Pension has been tailor made for the self employed and solo directors.
This innovative new benefit is being launched on Tuesday the 3rd of March so please enter your details below if you’d like to express an interest ahead of launch.