Self-employment is increasingly popular in the United States. According to Alliance Virtual Offices, the number of business startups (entrepreneurs or solopreneurs) grew from 3.5 million in 2019 to 4.4 million in 2020, a 24 percent increase.
Women entrepreneurs are leading the growth as they are a driving force in the economy. The average life expectancy for a woman in the United States is three to five years longer than a man. As a result, women should save and invest more today, so they have enough income to live comfortably in retirement.
Being the boss is rewarding—You choose your work hours; take vacations and sick days at your leisure—however it comes with many responsibilities.
If you are an entrepreneur or a small business owner, you often outsource responsibilities to your employees or freelancers so you can focus on managing the business itself. If you are a solopreneur, your responsibilities include producing and delivering products or services to keep your business afloat.
Either way, when you are in the thick of running your business, searching and planning for a retirement plan is not at the top of your to-do list, especially if you are in your 20s or 30s.
Financial Advisor and Retirement Strategist, Jefflyn Dangerfield says, “When most people under 30 think of retirement, they often think of old people and old things. However, when you reach 40, for most, retirement becomes a very real and important consideration.” She adds, “The realization of not working for the rest of one’s life becomes very realistic… and the realization of not having money to live on, becomes a very vivid thought.”