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How To Prepare For Retirement When Self-Employed

How to Prepare for Retirement When Self-Employed

Do you ever wonder whether your self-employment affects your retirement plan?

When you have your own business, there are a lot of considerations to take into account when planning for retirement. It is never too early to begin planning for the life you want when you stop running your business. Yes, if you are self-employed, planning for your retirement is crucial.

Here, your reliable financial adviser in Sydney – Sydney Wealth Advisers, shares some of the things you may want to consider when getting ready to retire if you’re self-employed:

Planning for Retirement When Self-Employed

Set a Retirement Date

You should determine how long you want to continue working and set a retirement date. This can be in the back of your mind as you get ready for retirement. As you get closer to retirement, you can begin devoting more and more of your time and energy to preparing for your retirement, including working with a specialist retirement financial adviser to evaluate your retirement plan and address any issues you may have. The idea here is to continue to prepare yourself to make a smooth transition as you prepare to leave your business and enjoy your retirement years.

Determine How Much Spending You Will Need for Retirement

When counting down the days to retirement, you should be very clear about how much money you will need to live on for the rest of your life. It is possible that you need $500,000 for retirement, but it might be that you only need $200,000. Once you know how much money you will need, you can begin working on a plan to ensure that you have those funds when the time comes.

Make a Budget

When you are in business for yourself, it is essential to make a budget for your business and your personal life. By doing this, you can be sure that you are separating your business finances from your personal finances – saving money for your retirement and for any big purchases that you may want to make. A budget can keep you on track to help you with your financial goals and make certain that you are in good financial health when you retire.

The MoneySmart Budget Planner is a useful tool to help you here.

How Will You Transition Out of Your Business

If you are self-employed, you do not simply hand in your notice and clean out your desk on the last day of work. You need to work with your Business Adviser and Accountant to determine how you will transition out of the business. This will include answering questions such as:

  • Will you be selling the business to a third-party or a business partner?
  • Does the business need to be wrapped-up?
  • Will you be able to sell leftover inventory, equipment or property to help fund your retirement?
  • How long will preparations take to transition out and begin retirement?

Start Planning for Retirement As Self-Employed

Retirement planning can be a complicated process, especially when you are self-employed. However, if you want to retire comfortably, you need to find a way to plan for your retirement. In addition to taking care of your general financial health, you should work with a financial adviser in Sydney to think about the unique challenges of retirement planning if you are self-employed.

Sydney Wealth Advisers can provide you with expert retirement advice from a specialist financial adviser in Sydney. Contact us today so we can make a complimentary first appointment for you!


DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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