Continued financial security is clearly considered a risk factor for many contractors. As a contractor you will probably have to put in place a means to save towards your retirement, additionally, you need to ensure you have a safety net for any downtime.
Most of our clients are doing something to manage the financial risk associated with retirement. In our recent State of the Nation survey, we found 56% are investing in pensions to balance the lack of future security. 20% are already using their personal tax-free saving allowance and 15% are buying stocks and shares. 25% either have or intend to buy a second home or invest in rental property.
That leaves almost a third with no current plans for retirement, though many of our participants hope to change this by either investing in pensions, stocks or savings this year.
Those without pension plans may well be new to the world of contracting and yet to get this part of their finances straight, they could be focusing on building up a client base to spare the funds or they might just be directing their earnings to pursue their lifestyle objectives first.
We all know the fundamental rule of saving as a contractor – save when you’re earning for the times you’re not. Most contractors will experience times of boom and bust throughout their career. Ensuring consistent savings when work is flowing means you can survive any dry periods. This can be easier said than done, so it’s worth reading our beginner’s guide to kick-starting your savings now.
Taking a break shouldn’t be painful
If you find yourself between
The State of the Nation 2019
2019 is set to be another year of monumental change and uncertainty. Politics, the economy, society and technology are all continuing to change at lightning speed. That’s why, in January, we conducted a survey to find out how contractors are preparing for the future. Our 2019 report brings together our thoughts on the current mood of contractors across the nation, leveraging data from our expert clients and comment from our in-house specialists, to provide a close-up look at what contractors are talking and worry about for the coming year.
Download the free full report in our eBook library.