Is There Such A Thing As A Self-Employment Safety Net?
The UK is experiencing something of a self-employment boom right now. In fact, self-employed workers make up an astounding 15% of the UK workforce, and that number is only set to rise. From freelance writers to tradespeople and consultants; it’s now possible to do it all ourselves. And, if the stats are anything to go by, we can’t get enough.
Despite this increase, though, hundreds are still holding off on their self-employment dreams, and it’s all because of a lack of job security. Benefits aside, there’s no getting around the fact that self-employment is insecure. Ditching the 9-5 also means leaving holiday pay and sick leave. These are things those of us with financial burdens like mortgages and families can’t do without.
People are managing to live this way, though, and some are even finding some semblance of security. To make sure you can do the same, we’re going to consider how they’re managing it.
Perfecting time management
This may seem like a simple point, but you’d be amazed by how much proper time management can afford self-employed security. Making sure you have jobs booked in advance means you never need to worry about not having work. That’s vital for ensuring you can both reduce self-employment stress and cover your bills every month. Instead of working on a day-to-day basis as you would in the office, then, perfect the art of looking ahead. If you have a year of jobs lined up, you’ll be in the best position moving forward.
Insurance policies
To meet with the increase in self-employment, many insurance policies now offer security to individuals who go it alone. These can also work wonders for removing the uncertainty which plagued freelancers even a few years ago. Not only do they cover legal expenses, but options like Rhino Trade Insurance also make sure you get paid for tasks like jury duty. Other insurance policies can even cover you for time taken sick. These are the benefits you would otherwise see from an employer. And, they could save you from ever losing significant sums of money at a moment’s notice.
Private pensions
Most people would admit to worrying most about their pension when transitioning to self-employment. There’s no denying that there have certainly been issues with pensions in this area in the past. But, a decent retirement isn’t impossible when you’re self-employed. By paying into a private pension plan like Nest as soon as you start working for yourself, you can save tax-free money for later life. While you do miss out on employer contributions, you also have the benefit of not being limited in your pension payments here. As such, you can adjust your amounts according to your income. That means you may even end up with a nicer pension than you would have if you’d remained in employment.
Self-employment does, undeniably, bring some security risks. With proper thought, though, it’s possible to overcome them and find a new level of safety in this entirely different way of working.