Saving for Retirement for the Self employed

Compulsory superannuation contributions force most of us to save for our retirement; however, one group that this does not apply to is the self-employed.  Business owners are at risk of a sub-standard retirement as many neglect to save for their own retirement.

We encourage business owners to pay the same attention to their own retirement as they do their employees. We advise that the self-employed aim to save 9.5% of their income for their retirement, the same as the compulsory super contributions for their staff.

Superannuation is a very tax effective way to save for retirement as contributions are tax deductible and earnings taxed concessionally.  Although not as tax effective, saving in an accessible investment may be prudent for those self-employed who do not have a stable cash flow.