When you begin considering the possibility of starting your own business and sit down to develop a plan you probably think you have covered all the basics. Branding, finances, what the business is/does and how you will sell these services/products, marketing but do you think about your pension? Actually even now as an established business have you considered your pension or even life insurance? What will you do in your old age for money? Are you planning to sell your business? Are you investing right now for your future? Self-employed mums were recently highlighted as one of the ‘pension gender gap’ groups. Ekk! There are so many ways in which self-employed mums can protect themselves and their future but getting around to it is probably not top of the list.
4 Ways In Which Self-employed Mums Can Protect Themselves and Future :
Flu Jab : OK so this might sound crazy but a flu jab costs under £10 and should be a self-employed necessity. The flu vaccine helps you to stay healthy but also prevents the spread of flu among family, friends and work colleagues. Flu is contagious and it can be passed through coughing, sneezing or by touching contaminated surfaces. Self-employed individuals can ill afford time off being sick.
Insurances : Most self-employed individuals will have some kind of insurance for their business but what about for themselves? What is life insurance? Life insurance pays a lump to support your family, should the worst happen to you. You pay a small monthly amount and get the peace of mind that your children will be cared for when you are no longer around. However, for self-employed mums, there are also critical illness cover or income protection in case for any reason you are too sick or injured to work, or get a serious illness.
Pension Plans : Self-employed individuals are entitled to the State Pension in just the same way as anyone else. However, unlike employed individuals who are provided with workplace pensions schemes, your State Pension could literally be all you get. It is worth looking into setting up a Personal Pension. Benefits include 25% pension tax relief for example if you pay £100 into your pension, the government will add an extra £25. It’s also worth noting that if you die before 75, your pension can usually be passed on to your family as a lump sum and free from inheritance tax deductions.
Savings : Savings accounts work differently from regular bank accounts as you put money in and earn interest. Savings accounts are solely there for you to earn interest, you don’t have debit cards or facilities to pay bills etc. You can save up to £85,000 per person and interest is tax-free, you can also split across multiple accounts or even move your money around to get the best deals. MoneySavingExpert has lots of great advice on savings accounts.
Things happen and change in our lives at a rapid pace, it’s always worth being prepared, especially when you are self-employed and don’t have employer schemes to fall back on.
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