Tracey Ford, a self-employed individual from Johnstone, Scotland, is making pension saving a priority this year. Despite her 30 years of irregular income, retirement saving has been challenging for Tracey. Unlike those with traditional employment and auto-enrolment schemes, self-employed individuals like Tracey have to actively manage their pension savings.
At 53 years old, Tracey realizes she lacks a substantial pension due to her past financial circumstances. She had a small company pension from her previous job, but its value remains unclear. Tracey admits that saving for retirement was not a top concern when she became self-employed, as other financial obligations took precedence.
With more than one in three self-employed workers in the UK at risk of pension poverty, Tracey’s situation is not unique. However, she has recently transitioned her career to become a wedding and funeral celebrant, aiming to make it her primary income source. This shift has enabled her to plan her finances better, with bookings secured years in advance, providing stability for her retirement planning.
Recognizing the importance of securing her financial future, Tracey plans to initiate a private pension using her savings later this year. She encourages others to start thinking about retirement savings regardless of age, emphasizing that it is never too late to begin. Tracey aims to save £10,000 to £15,000 by the end of the year, intending to allocate a portion of it towards a pension fund.
If you want to estimate your future pension income, you can use the pension calculator on the Money Helper website. Planning for retirement is crucial, and Tracey’s proactive approach serves as a reminder that it’s never too late to start saving for the future.