Prudent contractors planning for retirement
Contractor accountant ClearSky, which staged the two-day advice clinic in London, said more of its clients are embracing retirement planning than ever before.
Richard Murray, head of operations at ClearSky, attributed contractors’ growing interest in their pension pot to publicity around George Osborne’s recent reforms, as well as structural changes in the UK labour market.
He said: “I don’t think we would have seen the same level of interest in pensions, had this event taken place five years ago.
“There was a lot of interest in the coalition’s & lsquo;freedom’ reforms, and how to take advantage of them in a tax-efficient way.
“Many of today’s contractors are in it for the long term. Increasingly, they realise the importance of building up a pension pot when the assignments are flowing and they’re at the peak of their earning power.
“This is a positive development, and is further evidence of the & lsquo;normalisation’ of contracting as a career choice for skilled professionals.”
Nearly 70 of the 252 attendees at the event were umbrella contractors employed by ClearSky’s sister firm, Parasol, but with an interest in going limited.
Pensions advice is one service being offered by ClearSky and Parasol through their new stand-alone financial services divisions.
Parasol Financial Services and ClearSky Financial Services, both launched this week, also offer contractors advice on mortgages, income protection, life and critical illness cover, wills and ISAs.
Financial advisor Martyn Grimley, who has 26 years of industry experience, is heading up the new companies.
He said: “The modern contractor, whether employed by an umbrella or a business owner in their own right, wants advice on his or her personal finances.
“We feel it’s important to ensure that all of the contractors we serve have access to impartial, well-informed guidance that is tailored to their way of working.”
ClearSky and Parasol are part of the Optionis Group.