Retirement Planning for the Self Employed
Self-employed people in particular, are constantly bombarded with messages from the media, government & pension providers highlighting the need to save for retirement. One of the reasons for this 'attention', is because self-employed individuals have to fund their entire retirement income themselves, rather than sharing the burden with the state & one's employer.
Yet, many people who run their own businesses have given little or no thought about how much the lifestyle they want to have when they retire will cost, let alone how they will pay for it - perhaps because retirement seems a long way off. Whether it is 5 years away or 30 years away, the fact of the matter is, many self-employed individuals believe that they have far more pressing financial priorities.
However - to focus the mind, it is worth asking yourself - If you were faced with loss of your income tomorrow, what would you have to cut back on?
| Will you have sufficient income in retirement to pay for....? |
| Survival | Other Basics | Comforts | Luxuries |
|---|---|---|---|
| Weekly Food | Private Medical | Regular Meals Out | Holidays Abroad |
| Heating | Landline and Mobile | Basic Holiday | Weekends Away |
| Light | Car - Tax/Insurance/Fuel | Home Improvements | Replace Car |
| Gas | Basic House/Car Repairs | Entertainment (Pub/Cinema) | Pursue Dreams (Buy a boat / Travel the World / Live abroad) |
| Medical | Cable TV | Gifts for children, grandchildren and loved ones | Financial support for children, grandchildren and loved ones |
| Home Insurance | Internet | Club Membership (Golf/Gym/Other) | Leave a Legacy / Pass on a business/Provision for loved ones |
AIB can help you to plan for retirement.
A specialist AIB Financial Adviser can meet with you to help you:
- Think about the standard of living you want in retirement.
- How much of an income you would need to pay for this lifestyle.
- How much of a retirement pot you will need to build up to deliver this level of income in retirement.
- Then, based on your circumstances, help you tailor an appropriate and tax-efficient mix of investments to help build up your required 'pot'.
Once your retirement plan is agreed and in place, then it is down to start saving / investing for your future and to remain disciplined.
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Warning: Past performance is not a reliable guide to future performance |
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Warning: The value of your investment may go down as well as up |
Here to help & advise
Click here to arrange an appointment with a specialist AIB Financial Adviser or call in to your local Branch.
For further information, brochures or guides please see the Related Information box on the right hand side of this page.