Is There Retirement After Self Employment?
Independent Contractors Have to Plan (More) for the Future
Apr 14, 2009
Isn’t everyone aiming toward some form of retirement? For the self employed, the future might feel a little bit more uncertain. Does having no employer mean having no security? Not necessarily- but independent contractors have to plan (more) for the future.
The economy is uncertain right now, and the future always is. Self employed professionals who independently find their own jobs will not necessarily be provided a retirement plan by any employer or government. Is there retirement after self employment? Yes- but the professionals, as was in the case with their careers, must create this plan for themselves.
Self Employment and Social Security
The U.S. government provides, at least at present, social security for senior citizens (persons aged sixty-five or older). This is put in place to provide at least some funds for professionals after they stop being actively employed. Because everyone who works pays income taxes and therefore contributes to the social security fund, everyone is eligible for some form of social security - for as long as that institution lasts.
The future of social security, much like the future of self employment, remains something of a mystery. Will social security be available tomorrow for the independent contractors of today? No one knows - and that’s why it’s important to have other retirement plans in place.
Other Government-Based Retirement Plans for Self Employment
Is there retirement after self employment? There is if it’s created, through plans and investments that will help to ensure a secure future. Many federal governments provide 401k and other types of retirement plans for business owners, as many federal governments legally require these plans be in place. The US government provides plans and advice for small business owners that could help independent contractors prepare for their future as well.
Planning for the Future
Even independent contractors might want to slow down and stop work at some point in their careers, and that means it’s necessary to have retirement plans for life after self employment. What is retirement? It’s the cessation of full-time employment. How does a self employed professional make retirement happen? Well, just find some other way to get money - or, have money saved up in place of steady income.
Planning for the future doesn’t just begin and end with retirement plans. Self employed professionals should have health and life insurance plans in place as well - plans which, at present, must be purchased as individual policies. Retirement plans for independent contractors may come in the form of 401k plans, savings accounts, investment accounts or other types of interest-building bank accounts that will help to provide some income in the absence of full-time employment.
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