Latest news with #freelancers
Yahoo
a day ago
- Business
- Yahoo
Are you among the 82% of self-employed people who don't pay into a pension? How to take charge of your retirement savings
If you're self-employed, when was the last time someone talked to you about pensions? Chances are, probably not very recently. However, research from NEST Insights shows that more than half of self-employed people in the UK - which includes freelancers, sole traders and limited company owners - are on track to experience retirement poverty. This compares to just a quarter of full-time employees. According to the Pensions and Lifetime Savings Association, the new state pension (£11,973 a year) isn't enough to meet the minimum standard of living of £13,400 a year for a single person, and only just meets the minimum standard for a couple (£21,600 a year) living outside London. Why have self-employed people been left behind with pensions? There has been a dramatic drop in pension saving among the self-employed in the last few decades. Back in 1998, 60 per cent of self-employed people earning at least £10,000 a year were paying into a private pension. By 2025, that figure had collapsed to just 18 per cent, despite almost 75 per cent of this group saying they want to save for retirement. Meanwhile, auto-enrolment has consistently boosted pension savings among employees. When it launched in 2012, around 47 per cent of employees were enrolled in workplace pensions. By 2024, that figure had grown to about 80 per cent. Would auto-enrolment participation be anywhere near 80 per cent if employees had to do it all manually? It seems unlikely. For the self-employed, there are no monthly contributions quietly being deducted from your earnings before you even notice them. You need to manually save into your pension by transferring money from your bank account, or setting up direct debits. However, other NEST research has found 57 per cent of self-employed people would prefer putting money into a mix of illiquid savings (funds locked away until retirement) and liquid savings (cash that is easily accessible) when saving for retirement. This type of hybrid account structure isn't currently available within one product. Small and consistent makes the biggest difference Self-employed people can still make a difference to their futures, though - without jeopardising their short-term money needs. For example, £2 invested every day into a private pension could become just under £12,000 after 10 years, about £31,000 after 20 years, and about £62,000 after 30 years (for basic-rate taxpayers). An additional £60,000 can give you £250 more to live on each month for 20 years, on top of the State Pension (discounting inflation and other economic factors). (Getty/iStock) The main pension options for self-employed people at present are: 1. SIPP (Self-Invested Personal Pension) - This is a DIY pension that gives you access to a wide choice of shares, funds and ETFs. You get 20 per cent tax relief on contributions as a basic rate payer. 2. Managed or personal pension - If managing your own investments sounds like a chore, go for a provider that does it for you. These pensions, which are usually marketed as 'personal' or 'managed' pensions, adjust your portfolio based on market conditions and other macroeconomic factors. It's a great 'set-it-and-forget-it option' for busy freelancers and small business owners. You get the same tax relief as with SIPPs and can often choose your personal risk tolerance level. 3. Lifetime ISA (LISA) - If you're under 40, opening a LISA is an option. This includes a 25 per cent government bonus on top of every contribution you make until you turn 50. That means there's up to £1,000 up for grabs each year with a maximum contribution of £4,000. Unlike a pension, LISA withdrawals after age 60 are tax-free but there are factors to be aware of including withdrawal penalties. For a more detailed LISA vs personal pension comparison, read here. 4. Paying through your limited company - If you run a limited company, you can make pension contributions directly from your business as an allowable expense, which can reduce your corporation tax bill. This is often the most tax-efficient way for company directors to save for a pension, especially if you pay yourself with dividends. Expert pensions tips for the self-employed Sarah Pennells, consumer finance specialist at Royal London, has four key tips. Firstly, treat your pension contributions as a must-pay. 'Set aside a regular sum every month to pay into a pension. If it helps to motivate you, treat the money you pay into your pension like any other bill,' Ms Pennells says. (Getty Images/iStockphoto) It's also important to understand the tax benefits, especially if you're a higher-rate taxpayer: 'If you run a limited company, making pension contributions through the limited company will reduce your company's taxable profits.' You also don't have to stop with monthly payments - bulk dropping a bonus can supercharge your pension. 'If regular saving is tough, aim to make one-off contributions after higher-earning periods, such as at the end of a project, or as you're approaching the end of the tax year,' she adds. Finally, do set a clear retirement goal. 'Knowing what you want your retirement to look like makes it easier to plan. Use online pension calculators to check if you're on track- it can help keep you motivated. The key question to ask yourself is: what will you live on when you retire if you don't have a pension?'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
a day ago
- Business
- The Independent
Are you among the 82% of self-employed people who don't pay into a pension? Here's how to take charge
If you're self-employed, when was the last time someone talked to you about pensions? Chances are, probably not very recently. However, research from NEST Insights shows that more than half of self-employed people in the UK - which includes freelancers, sole traders and limited company owners - are on track to experience retirement poverty. This compares to just a quarter of full-time employees. According to the Pensions and Lifetime Savings Association, the new state pension (£11,973 a year) isn't enough to meet the minimum standard of living of £13,400 a year for a single person, and only just meets the minimum standard for a couple (£21,600 a year) living outside London. Why have self-employed people been left behind with pensions? There has been a dramatic drop in pension saving among the self-employed in the last few decades. Back in 1998, 60 per cent of self-employed people earning at least £10,000 a year were paying into a private pension. By 2025, that figure had collapsed to just 18 per cent, despite almost 75 per cent of this group saying they want to save for retirement. Meanwhile, auto-enrolment has consistently boosted pension savings among employees. When it launched in 2012, around 47 per cent of employees were enrolled in workplace pensions. By 2024, that figure had grown to about 80 per cent. Would auto-enrolment participation be anywhere near 80 per cent if employees had to do it all manually? It seems unlikely. For the self-employed, there are no monthly contributions quietly being deducted from your earnings before you even notice them. You need to manually save into your pension by transferring money from your bank account, or setting up direct debits. However, other NEST research has found 57 per cent of self-employed people would prefer putting money into a mix of illiquid savings (funds locked away until retirement) and liquid savings (cash that is easily accessible) when saving for retirement. This type of hybrid account structure isn't currently available within one product. Self-employed people can still make a difference to their futures, though - without jeopardising their short-term money needs. For example, £2 invested every day into a private pension could become just under £12,000 after 10 years, about £31,000 after 20 years, and about £62,000 after 30 years (for basic-rate taxpayers). An additional £60,000 can give you £250 more to live on each month for 20 years, on top of the State Pension (discounting inflation and other economic factors). The main pension options for self-employed people at present are: 1. SIPP (Self-Invested Personal Pension) - This is a DIY pension that gives you access to a wide choice of shares, funds and ETFs. You get 20 per cent tax relief on contributions as a basic rate payer. 2. Managed or personal pension - If managing your own investments sounds like a chore, go for a provider that does it for you. These pensions, which are usually marketed as 'personal' or 'managed' pensions, adjust your portfolio based on market conditions and other macroeconomic factors. It's a great 'set-it-and-forget-it option' for busy freelancers and small business owners. You get the same tax relief as with SIPPs and can often choose your personal risk tolerance level. 3. Lifetime ISA (LISA) - If you're under 40, opening a LISA is an option. This includes a 25 per cent government bonus on top of every contribution you make until you turn 50. That means there's up to £1,000 up for grabs each year with a maximum contribution of £4,000. Unlike a pension, LISA withdrawals after age 60 are tax-free but there are factors to be aware of including withdrawal penalties. For a more detailed LISA vs personal pension comparison, read here. 4. Paying through your limited company - If you run a limited company, you can make pension contributions directly from your business as an allowable expense, which can reduce your corporation tax bill. This is often the most tax-efficient way for company directors to save for a pension, especially if you pay yourself with dividends. Expert pensions tips for the self-employed Sarah Pennells, consumer finance specialist at Royal London, has four key tips. Firstly, treat your pension contributions as a must-pay. 'Set aside a regular sum every month to pay into a pension. If it helps to motivate you, treat the money you pay into your pension like any other bill,' Ms Pennells says. It's also important to understand the tax benefits, especially if you're a higher-rate taxpayer: 'If you run a limited company, making pension contributions through the limited company will reduce your company's taxable profits.' You also don't have to stop with monthly payments - bulk dropping a bonus can supercharge your pension. 'If regular saving is tough, aim to make one-off contributions after higher-earning periods, such as at the end of a project, or as you're approaching the end of the tax year,' she adds. Finally, do set a clear retirement goal. 'Knowing what you want your retirement to look like makes it easier to plan. Use online pension calculators to check if you're on track- it can help keep you motivated. The key question to ask yourself is: what will you live on when you retire if you don't have a pension?' When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
Forbes
4 days ago
- Business
- Forbes
Google Vs. Microsoft. Vs. Coursera. Which AI Certification Is Best?
Employers are using AI to reduce headcount while retaining high-performing AI-skilled workers If your resume still says 'proficient in Microsoft Excel,' you're already late to the party. Companies are shedding roles rapidly, and the employees without AI skills are the ones getting hit first. About 92% of organizations intend to use AI-powered solutions by 2028, according to an AWS survey published last year. Employers also stated that they'd be more inclined to hire someone with AI skills who does not have experience or a degree, than hire someone with a degree and experience who does not have AI skills, according to Microsoft's Work Trend Index 2024. Their 2025 report also notes that a third of businesses are using AI to reduce headcount, but are retaining their top-performers. Microsoft Work Trend Index 2025 Why Should I Study AI Certifications? So where does that leave you if you lack AI skills? In a word: replaceable. If you want to get hired and stay hired, whether you're a freelancer or employee, you need AI certifications. But there are literally hundreds if not thousands of AI courses out there. How do you know which AI certification is best? Which one should you choose? This guide will help you make a better, informed choice, at a glance, so you can pick the best AI certification that aligns with your career goals and path: Is There A Google AI Certification? Google has a number of free and inexpensive learning paths and certifications for you to build AI skills. Here are a couple examples of what's included: Who it's for: Beginners, anyone seeking to grasp the basics Who it's for: Managers and business leaders/executives, including HR professionals Benefits of choosing a Google Professional Certificate Does Microsoft Offer An AI Certification? Yes, Microsoft has AI certifications that it offers through its educational upskilling arm: Microsoft Learn. For example: Who it's for: Best for beginners with basic awareness of cloud concepts and client-server applications. You don't need a technical background to study this AI certification. Who it's for: Tech professionals with experience building solutions using Python and C# Why take a Microsoft Learn AI certificate? Are Coursera Certificates Worth Taking? The online course hosting giant Coursera has a range of courses delivered by credible experts, world-renowned platforms and institutions such as Harvard, Stanford, and Deep Learning. Many of Google's professional certificates are delivered via Coursera as well. Some examples of available AI certificates include: Who it's for: Any professional can take this course, irrespective of your background or prior knowledge. Who it's for: If you're preparing to launch a career as an AI product manager, whether you're making a career pivot, preparing to launch a freelance business, or want to progress up the ladder, this is for you. This AI certificate is best for beginners. Some other tangible benefits of taking AI certifications via Coursera include: The best AI certificate is the one that serves your career goals and offers maximum value and ... More credibility Which AI Certification Pays Best? If you're looking for a high-paying AI certification, you need to think niche. Move beyond broad, generalized AI knowledge, and start looking at applied AI courses. For example, AI for marketing, AI for sales and business development, AI for HR, etc. When you focus on optimizing your own specialism (applied AI), you'll see stronger, higher quality results, and that's when you'll see it reflect in your salary. Studying to develop AI skills is imperative for your career growth and job retention. You literally have no other choice. Select the course that best suits your career goals and the value you desire to convey on your resume and LinkedIn profile, and start studying and refining your AI skills. Begin building leverage intentionally today. For further reading, check out this Forbes article on beginner-friendly AI certifications.
Forbes
5 days ago
- Business
- Forbes
Upwork's Economic Advisory Council And The Next Phase Of Open Talent
A new era of work is emerging where diverse global talent connects through platforms evolving into ... More strategic ecosystems. In a world racing to adapt to AI and evolving work norms, platforms that once merely connected freelancers to gigs are stepping into a much larger role. Upwork's recent announcement of its new Economic Advisory Council is more than a PR move. It signals that open talent is maturing. For years, I've written about the transformative power of open talent models. What began as a way to increase flexibility in hiring is now pushing companies to rethink the very structure of work. Upwork's move reinforces a message I've been sharing for over a decade: the open talent economy is no longer a side hustle. It's becoming a central force in how work gets done. The creation of this council brings academic rigor and economic insight into a space too often shaped by short-term thinking. With leading scholars involved, the council is positioned to explore fundamental questions: How should labor markets evolve to accommodate AI-human collaboration? What policy frameworks can balance worker protections with innovation? How do platforms scale globally while maintaining trust and transparency? The goal isn't to make small adjustments to how remote work operates. It's to help shape a labor model that works at scale, for both individuals and institutions. This marks a real shift. Until recently, platforms like Upwork were seen mainly as tools for convenience. They helped companies find quick help and gave individuals a way to earn income on the side. But as AI accelerates and businesses need more agility, platforms are becoming foundational infrastructure. And with that shift comes responsibility. I've often argued that the next evolution of work requires a new kind of operating system, one that integrates human ingenuity with algorithmic efficiency, one that values relationships as much as transactions. Upwork's council moves us closer to that vision. It reflects a willingness to evolve from being just a digital marketplace to becoming a steward of a more inclusive and strategic ecosystem. We've already seen this evolution play out across other leading talent marketplaces. These platforms aren't just intermediaries anymore. They're building communities, investing in professional development, and offering long-term support. That transition from gig broker to ecosystem builder is what will sustain their relevance in the years ahead. The timing of Upwork's announcement reflects broader pressures. The freelance economy is booming, but it's also facing challenges. Workers are asking for more career development and stability. Clients want greater accountability and consistency. Governments are looking for clarity on how to regulate this space. The council creates a forum to address these issues in a coordinated way, helping to define what 'good' looks like for everyone involved. At the heart of this is a core tension that balances freedom with structure. Open talent gives people agency over their work, but without thoughtful systems in place, that freedom can drift into fragmentation. That's the tightrope we're walking, and it demands a co-creative approach. Platforms, policymakers, and participants all need to be part of the conversation. This has always been central to the philosophy of open talent. It's not just about tapping into a labor pool. It's about building trust, supporting development, and creating a sense of belonging within a flexible workforce. Upwork's move also highlights a deeper truth: meaningful innovation in talent strategy doesn't come from automating the status quo. It comes from reimagining the purpose of work itself. It's not about replacing HR. It's about making talent more fluid, more equitable, and more responsive to the needs of today's economy. We're still early in this transformation. The council is just getting started. But the signal is clear. The age of open talent is reaching a new phase. We're moving from gig work to governance, from matching tasks to shaping meaning. If you're a leader navigating this change, now is the moment to lean in. Use platforms not just to plug resource gaps but to extend and evolve your workforce. View recruiters as strategic advisors, not transactional intermediaries. And understand that building the future of talent is a shared responsibility. Welcome to the next phase of open talent. It's more ambitious, more inclusive, and more vital than ever.
Forbes
5 days ago
- Business
- Forbes
Turning Hobbies Into Retirement Income: Pros And Cons For Retirees
Your hobbies may make you extra cash in retirement, but is it worth it? (Photo by Tim Boyle) Retirement is often seen as a time to relax and enjoy the fruits of one's labor. However, for many retirees, it's also an opportunity to explore passions and even generate additional income. Monetizing hobbies can provide both financial benefits and personal fulfillment, but it's essential to weigh the advantages and potential drawbacks before diving in. The Upside: Benefits of Monetizing Hobbies With rising living costs and longer life expectancies, some retirees find that their savings need a boost. Turning a hobby into a side hustle can provide that extra financial cushion. Whether it's selling handmade crafts, offering tutoring services, or freelance writing, these activities can help cover unexpected expenses or fund leisure activities. Engaging in meaningful activities post-retirement can enhance mental well-being. Monetizing a hobby not only keeps the mind active but also instills a sense of purpose. For instance, a retiree who loves gardening might start a small business selling homegrown produce, combining passion with productivity. Unlike traditional jobs, monetized hobbies often allow retirees to set their own schedules. This flexibility ensures that they can work at their own pace, maintaining a balance between leisure and work. Participating in markets, workshops, or online platforms can introduce retirees to like-minded individuals. These interactions can lead to new friendships and collaborations, enriching the retirement experience. The Downside: Potential Challenges While some hobbies can generate income, it's often unpredictable. For example, selling crafts might yield profits during holiday season but slow down at other times. Relying solely on hobby income can be risky without other financial backups. Starting a hobby-based business might require upfront costs, materials, equipment, or marketing. Without careful budgeting, expenses can outweigh profits. For instance, investing heavily in photography gear without a clear plan to monetize can strain finances. Earning income from hobbies can introduce complexities like business licenses, permits, or tax obligations. It's crucial to understand local regulations and consult with financial advisors to ensure compliance. Turning a beloved hobby into a business can sometimes diminish the joy it once brought. Deadlines, customer expectations, or the pressure to profit can make the activity feel more like work than leisure. Real-Life Examples Tips for Success Monetizing hobbies in retirement can be a rewarding endeavor, offering both financial benefits and personal satisfaction. However, it's essential to approach it thoughtfully, ensuring that the pursuit enhances, rather than detracts from, the retirement experience.
