While retirement looks different for different people when it comes it to entrepreneurs they bear the full responsibility of planning their financial future unlike salaried employees who have retirement funds set up by their employers.
Michelle Geraghty, business development head at FNB Business Advisory said that entrepreneurs fall into a unique category when it comes to retirement because they are are individuals who have often invested not just money but also their heart and soul into building their business.
However, the reality is that even entrepreneurs need to slow down which could mean stepping away from their business to start the retirement stage of their lives.
“While retirement may look vastly different for every entrepreneur, one common thread binds them together, and that is the absolute necessity to plan. And irrespective of what your ideal retirement, or slower pace of life, looks like, there are a few common considerations to keep in mind,” Geraghty said.
Here are a few things entrepreneurs need to keep in mind when saving for retirement:
– Hildegard Wilson, product solution design specialist at Momentum Investments said that people should start saving for retirement and start as early as possible, even if it is a small amount every month.
– Kerry Sutherland, a certified financial planner at Alexforbes said you should peak to a financial adviser so they can ensure that your investment portfolio in your retirement fund or savings matches your risk profile.
– Don’t draw from your retirement fund too early because the longer you delay drawing an income from your retirement savings, the greater your chances of being able to cover your expenses when you retire.
– If you think you don’t have any extra money to put towards your retirement savings, then draw up a budget to take a look at your finances to see where you can save money.
– According to Sutherland, if you have taxable annual income, you should make use of retirement fund vehicles for savings through a private retirement annuity.
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