How To Ensure You Are Still Able To Follow Your Entrepreneurial Path
The company you work for decides to declare you redundant and lay you off. You find yourself suddenly out of a job. This could be the very real reality for any one to face. Fortunately for you, you’ve been in pensionable employment and have managed to set aside a decent amount of money. The future doesn’t seem so bleak because you’ve decided to venture out to be an entrepreneur.
Most people only think of pensions as merely savings to help them live out their retirement, but never as the opportunity to start a new chapter in their lives. Your pension can help you have a career change or live out your dream of being your own boss. A study carried out in 2014 by Merrill Lynch indicated that, “people eschewing retirement are three times more likely to be entrepreneurs and small business owners than young people. These new entrepreneurs are optimizing their life and work experience to build everything from simple craft companies to multimillion-dollar technology businesses”.
The end of employment could signify completely new beginnings for those with the entrepreneurial bent. Perhaps you’ve always wanted to pursue farming full time, turn your long side hobby of photography or cooking into something full time, perhaps even providing you’re your work expertise on a consultancy basis. All that is possible with a pension backing you up.
Learning how to reinvent yourself and use your skills and experience in your new endeavour is quite an asset. Staying active and engaged during your retirement years can combat the unexpected feelings of trauma that often accompany the sudden loss of employment. You can still make meaningful contributions through your business that not only your clients will appreciate, but could help drive the economy, bringing an even greater sense of satisfaction.
Most companies have private pension schemes that offer you sizeable returns on your contributions. Your employer matches your contributions towards the fund, and it is then invested in various instruments such as fixed deposits, property, corporate bonds, government bonds among others. The investment yields are good enough to ensure the beneficiaries of the plan retire with a reasonably good pension, enough to help launch a new chapter in their golden years.
People in pensionable employment have their plans calculated according to the number of years they have served, the level of seniority in the company and age and your annual compensation. Once signed on, contributions can be made by way of automatic salary deduction every month. Most fund managers take care to only invest in profitable and secure instruments to safeguard their clients’ interests, so you can rest assured that your pension nest egg is safe.
As you can see, pension funds offer you the opportunity to start a new life altogether, so think of investing in one today.