Self-Employed Workers Less Likely to Save for Retirement

Although one of the best aspects of being self-employed can be the independence it allows, that same independence applies to saving for retirement. Self-employed workers usually do not have the same access to 401(k) savings plans and automatic contribution plans that traditional employees of a company have, so individuals must practice greater control over their own retirement planning. A survey from TD Ameritrade indicates that nearly 70% of entrepreneurs, contractors and other self-employed individuals were not saving for retirement on a regular basis, if they were even saving for retirement at all. Additionally, 28% percent of self-employed workers did not have retirement savings accounts, which is in contrast to the 10% of traditionally employed workers who did not have retirement savings accounts.

Self-employed jobs have increased by more than 14% since 2001, and today more than ten million Americans are self-employed. There are many benefits to being your own boss, but a major disadvantage is that there are less options for retirement savings accounts. No matter how you are employed, opening and contributing regularly to a retirement plan is both beneficial and necessary to prepare for the future. If you are self-employed, research your options and set up a plan the same way you would if you had an employer who offered a retirement plan. Although account options might be limited and a bit more complicated to open, self-employed workers should still open a retirement plan and begin saving immediately. If you have any questions about retirement plans, please contact us.

518 Arbor Hill Rd.

Kernersville, NC 27284

 Ph: 336-996-3338

 www.cpamcdaniel.com

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).