Are You a Self-Employed Person?

Being a gig worker/freelancer/self-employed offers wonderful opportunities to unleash our creativity and balance our time.

It allows us to have full control over our career paths. Thankfully, it helps us to avoid toxic office cultures that has (and continue to) plagued many of us.

However, great freedom also comes with great responsibility. Besides providing material sustenance for our loved ones, a self-employed person is responsible to build his retirement nest conscientiously. The corporate safety net is no longer there for him.

Having being a salaried employee myself, I know how significant a role employers play a part in retirement funding i.e. CPF contribution.

I did some calculations based on the prevailing employer CPF contribution rates (PM me if you wish to see my computation).

Let us take a 25 year old employee who earns S$3,000 every month. He works consistently for the next 40 years. By age 65, his employer would have contributed at least $310,000 as CPF monies*!

*Assuming current CPFOA interest rate of 2.5% and all employer contributions are allocated there to simplify the illustration.

Do take note that I have not factored in salary increments, AWS and other company bonuses which also attract employer CPF contributions. Imagine how that would have compounded over time.

One key advantage of CPF contribution, may it be the part of employer or employee, is that retirement planning is not left to chance.

As a gig worker/freelancer/self-employed, do not leave retirement planning to chance. Have clear goals and preferences marked out. It is okay to start small but start NOW.

I would be happy to share a few tips with you!

Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Norman Ngai

I spent 16 years of my career in multinational life and general insurers in both underwriting and claim management roles. This contributed to my deep and diverse industry experience, which will benefit my individual and corporate clients.

I am a proud representative consultant of Financial Alliance now, one of the largest financial advisory firms in Singapore.

Financial Alliance partners over 50 life/general insurers, 5 investment platforms, 71 asset management companies and 5 estate planning partners.

Be assured that you are in good hands, if you wish to embark on your risk management and financial planning journey with me.

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