Retirement planning is a challenge, even more so if you’re someone without an employer-provided retirement plan, like a freelancer or contract worker. Since non-traditional workers don’t have the same retirement plan access as traditional workers, they have to take a more proactive approach to secure their future.
The first step is to understand the available retirement options. Non-traditional workers can still save and grow money over time with individual retirement accounts, self-managed super funds and other personal investment accounts. It’s best to explore these options early to maximise compound growth and minimise the missed opportunities.
The next step is to focus on contributing consistently. It’s easy to delay savings without having automatic deductions from a paycheck. It’s best to set up an automatic regular transfer to the retirement fund. This way, it’s easy to grow contributions and achieve significant growth over decades because of compounding interest.
It’s also critical to diversify investments. Non-traditional workers have irregular income streams. This makes risk management tricky. By combining safer and long-term investments with higher-risk opportunities, it’s possible to balance security and potential returns. This gives flexibility during scarce times.
Another thing to consider is income protection and emergency savings. It’s easy to face income gaps or unpredictable expenses. Having a robust emergency fund will allow you to continue with contributions without losing income. Furthermore, this provides additional peace of mind.
Lastly, it’s best to work with a financial advisor who has experience working with non-traditional workers. They can easily tailor a suitable retirement strategy by considering the unique income patterns, long-term goals and tax considerations of a non-traditional worker.
The first step is to understand the available retirement options. Non-traditional workers can still save and grow money over time with individual retirement accounts, self-managed super funds and other personal investment accounts. It’s best to explore these options early to maximise compound growth and minimise the missed opportunities.
The next step is to focus on contributing consistently. It’s easy to delay savings without having automatic deductions from a paycheck. It’s best to set up an automatic regular transfer to the retirement fund. This way, it’s easy to grow contributions and achieve significant growth over decades because of compounding interest.
It’s also critical to diversify investments. Non-traditional workers have irregular income streams. This makes risk management tricky. By combining safer and long-term investments with higher-risk opportunities, it’s possible to balance security and potential returns. This gives flexibility during scarce times.
Another thing to consider is income protection and emergency savings. It’s easy to face income gaps or unpredictable expenses. Having a robust emergency fund will allow you to continue with contributions without losing income. Furthermore, this provides additional peace of mind.
Lastly, it’s best to work with a financial advisor who has experience working with non-traditional workers. They can easily tailor a suitable retirement strategy by considering the unique income patterns, long-term goals and tax considerations of a non-traditional worker.