September 19, 2021

Beyond Going Long

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Self-employed people can also save for retirement – self-employed person – useful fact

Not every young man works. Many of them do business on the basis of the trade license. Even for young people who don’t start working as employees after school, but start a business, the experts have some advice.


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Self-employed people in particular should take full advantage of the potential of the third pillar and definitely look for other forms of investing money in retirement. If you move later, they may regret it 40 years later.

Self-employed persons (SZČO), that is, people who are self-employed, often improve their business, for example, in the first year of work, they also use state exemption from paying social security contributions.

“For self-employed people, it is important to choose an insurance company that does not have a supplemental PN linked to Social Security contributions. Otherwise, you will not get any insurance benefits in the event of a longer illness or accident, and since you are not even entitled to sickness benefit from Social Insurance Agency without contributions, you may encounter financial difficulties. Therefore, I recommend consulting an expert who will help you choose the right insurance company, ”advises Patrick Szabo of FinGO.sk.

Even according to an investment analyst, it is important to think ahead when creating a trade and to improve taxes and fees. “Now already, the first self-employed people who have paid the minimum contributions are retiring, and for these contributions they will also receive an adequate account of the pension, which they will not be able to jump into. Self-employed people in particular should take full advantage of the potential of the pillar Third and definitely look for other forms of investing money in retirement. If you move later, they may regret it after 40. The more different sources of income we secure before retirement, the more chance we will have a decent old age. It is ideal to diversify retirement savings, that is, divide it into several Tools. For example, young people can regularly invest part of their money in ETFs and part in gold, which is becoming more and more popular”, says František Burda from FinGO.sk.

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Self-employed people should also not forget about insurance related to their business, especially liability insurance. “A self-employed person is responsible for the performance of his business with all his property, and if his work inadvertently causes damage to the property or health of his client, his expenses may reach tens of thousands or hundreds of thousands of euros. Each business brings with it different kinds of risks, but insurance The most frequently used liability is of particular importance especially for craft professions, such as builders, plumbers, auto mechanics and the like”, explained Matus Madelinga, Director of Corporate Insurance at FinGO.sk.

Liability insurance can cost a self-employed person from about 20 euros per month, and the amount of the premium depends on the amounts and co-insurance he chooses in relation to potential risks in the performance of his profession.

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