Many of our clients have stopped their pension contributions. (I did this too as a DO).
This has allowed them to:
- Fund their business such as a website, brochures, branding etc.
- Go part-time – which free’s up some time, allowing them to put more time into their business which increases their business income.
I would like to encourage you to do the following:
- Workout your pension contributions and ask yourself, “can I achieve more income through a business per month than I am paying into a pension each month, to get access to it years in the future?” (You will be pleasantly surprised).
- Ask yourself, “do I need another source of income after retirement despite having a pension?”. A lot of those retired from the job find themselves in this situation, so why wait?
- Review yourself: If you achieved only £50,000 from your business per year and put away 10% of that yearly income (£5,000), you could start your own investment fund which you 100% control and which would give you far greater returns (not to mention being far more tax-efficient). Is this something that would benefit you? Oh, and that’s only an example of staying at £50,000. If you earn more revenue, your investment fund will be higher = financial security.
- Remember: the pension you have paid into so far gets deferred. It is not lost! You will have a pension at retirement but you could also have a much larger investment fund of investments you control.
- Consider: Do you trust the government to not make future changes that will impact your financial future?
Chase your passion. Not your pension.
It has the biggest return on investment!
Get in touch so you can find out how you can utilise your pension now!