Considering Retirement? 4 Ways Contracting Can Set Up A Worry-Free Transition
Planning for retirement is hugely important - but the idea of moving away from engineering and technical work entirely can be a daunting prospect for many individuals.
If you’re concerned about making the leap to retirement, embracing contract work can be a fantastic move.
Contracting is a flexible way to bridge the gap between full-time employment and retirement, enabling you to enjoy a healthy work-life balance, boost your pension pot, and set yourself up for a successful transition.
Below are a few ways that contract work can significantly benefit those considering retirement in the near future.
1. Enjoy more control over your work
This may seem like an obvious benefit of contracting, but it shouldn’t be overlooked.
When you switch to contract work, you’ll be able to cherry-pick your clients, set your own working hours, and focus exclusively on projects that interest you.
Contracting provides you with more independence, so you can enjoy a gradual shift from full-time employment into retirement. The transition doesn’t need to be abrupt and jarring - instead, you can manage your hours and make the journey at your own pace.
2. Remain mentally agile
Contracting is also a brilliant way to maintain job satisfaction without the obligations of a permanent role.
If you’re facing retirement, you may be concerned about losing your mental sharpness or feeling bored - and after a career of full-time employment, this makes complete sense.
Fortunately, contract work allows you to take on whatever workloads you’re comfortable with, so you can enjoy the stimulation of new projects without becoming stressed or overloaded. Whether you’re worried about missing social interactions with colleagues or the excitement of a professional challenge, contracting can fill the gaps.
3. Top up your pension fund
Contracting doesn’t just offer new challenges and job flexibility, either - it can also help you to boost your pension fund and avoid financial stress.
As a contractor, you can set up and contribute to a personal pension pot, so any additional income generated through contract work will bolster your retirement funds.
You may also be able to access certain tax relief benefits, depending on your contracting status and income. This means that you can maximise the amount of money being used to top up your pension fund, so you can enter retirement with healthy savings.
4. Capitalise on your experience
All of your professional experience can also help you to launch a lucrative contracting career.
Many older workers can negotiate higher contracting rates because they’re bringing a wealth of experience and specialist expertise to the table. If you’re smart with the contracts you accept, you can charge a premium for your services.
High-paying contract work is great for your pension, but it also enables you to work fewer hours if you’re looking to free up time.
Preparing for retirement can be a challenging process, and you might be feeling concerned about leaving full-time employment. Contract work is a solid option for individuals that want to transition slowly into retirement, rather than make a sudden jump.
Not only can you enjoy the perks of contracting (i.e. mental stimulation and flexible hours) but you can also top up your pension pot to prepare for a comfortable retirement.
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