CNBC: The self-employed face a financial challenge during COVID-19: saving for retirement
Author: Siân Killingsworth / 4 Sep 2020
Working for yourself comes with a lot of added freedom, but your retirement savings plan falls entirely on your shoulders.
For independent business owners and the self-employed, the task of funding future retirement and daily income has been always been a challenge.
According to CNBC, even before the pandemic, “just 13% of [self-employed] tax filers participated in a workplace retirement plan.”
Now, amidst the COVID-19 pandemic, many solopreneurs are facing an even greater struggle to save for the future. While many self-employed workers have been able to collect pandemic unemployment benefits created by the CARES Act, (According to CNBC, “Independent workers like the self-employed, independent contractors, and gig workers made up nearly half of the 31.5 million people receiving unemployment nationwide as of mid-June.”), these funds are primarily covering the losses businesses have experienced throughout recent months.
If you’re self-employed, how do you decide if, and how much to save? What kind of retirement plan will best fit your personal needs?