Do the self-employed feel confident about their financial future? Are they confident that they have taken the right steps to limit financial risks? NN gauges this factor with the Financial Peace-of-Mind Index. The self-employed score an average of 62.9 out of 100 here, while active wage-earners score 60.6.
It comes as no surprise to learn that financial peace of mind is strongly dependent on financial reserves. The NN Financial Peace-of-Mind Barometer shows that the self-employed feel that having six net monthly salaries in cash reserves is the basis for financial peace of mind. This is the case for almost half of the self-employed (48%).
Is it any wonder that in 2024 barely 23 per cent of the self-employed were confident that the government would still be able to pay out their pensions?
Self-employed people set their desired retirement age at 65 years on average, whereas the figure for wage-earners is 62 years. Did you know that almost 150,000 self-employed people continue to work after their retirement age? Remarkably, more than 12,000 self-employed people are still working even after the age of 80.
Two out of three self-employed Belgians over the age of 45 feel that they are not financially prepared for their retirement. This is a concern, because good planning is essential to avoid unpleasant surprises. An important reason for this lack of preparation is unclear pension goals and limited financial knowledge. Only 29% of self-employed people over the age of 45 have a clear picture of what their life will be like after retirement. In addition, only 35% of them know how much they will need to save to achieve a comfortable retirement. The result is that only 25% of self-employed people aged 45 and over expect their life after retirement to be ‘excellent’. Meanwhile, a remarkable 69% are striving to achieve financial freedom. This gap emphasises the need for effective pension planning.
For 44% of self-employed people aged 45 and older, long-term disability would cause serious financial problems, yet only 38% of them are insured for guaranteed income.
