By Tokiso TKay Nthebe
Can you really save for retirement when you’re self-employed?
Absolutely — and you must.
Across Africa and beyond, more people are choosing self-employment, freelancing, and entrepreneurship as traditional job opportunities decline. The post-pandemic economy has seen an inspiring rise in small business owners and independent professionals who are redefining work and creating sustainable livelihoods.
Yet, amid the hustle to grow and sustain income, many freelancers and entrepreneurs neglect one critical piece of financial planning: retirement.
One day, you’ll want (or need) to stop working — and the question becomes: will your money work for you?
This guide offers practical, actionable strategies to help you plan, save, and secure your financial future — no matter where you are in your entrepreneurial journey.
Who Counts as Self-Employed or a Freelancer?
If you work for yourself — whether you’re a freelancer, consultant, content creator, business owner, or contractor — you fall into this category.
- Freelancers earn income from projects or contracts rather than from a full-time employer
- Self-employed professionals run their own businesses, either as sole proprietors or registered companies.
Regardless of structure, the challenge is the same: you don’t have employer-sponsored benefits like a pension fund or 401(k). That means you are responsible for your own retirement plan.
Why Retirement Planning Matters for the Self-Employed
A common myth among entrepreneurs is that you can “reinvest everything back into the business” and worry about retirement later. But time is your biggest asset when it comes to wealth building — and the earlier you start, the easier it becomes.
Here’s why you should make retirement planning a priority:
✅ Your business isn’t your retirement plan – markets change, and so can income streams.
✅ You deserve financial independence – not just business success.
✅ You can benefit from tax advantages – if you structure your savings smartly.
To start building that foundation:
- Separate business and personal finances – this ensures clarity and discipline.
- Pay yourself a salary – even if small, it reinforces structure and helps you budget.
- Stay tax compliant – use proper accounting systems and leverage tax deductions.
Where Can You Invest for Retirement?
As a self-employed person, you have flexibility — and responsibility — to design your own retirement portfolio. Here are some of the most effective options:
1. Retirement Annuities (RAs)
A retirement annuity (RA) is a tax-efficient savings plan that helps you accumulate wealth for retirement. You can contribute regularly — even from as little as $50 or LSL1,000 per month — and withdraw from age 55. RAs are offered by asset managers and insurance companies, and they’re ideal if you want structure and tax benefits.
2. Investment Portfolios
If you prefer more control, consider diversified investment options such as:
- Unit Trusts / Mutual Funds – professionally managed, affordable entry.
- Exchange-Traded Funds (ETFs) – ideal for long-term, low-cost investing.
- Government Bonds – lower risk, steady returns.
- Endowment Policies – structured insurance-linked investments.
These allow you to build wealth and liquidity while staying flexible.
3. Property & Alternative Investments
Entrepreneurs often view real estate or business expansion as retirement assets. This can work, but ensure a balance between growth, liquidity, and risk. Consider diversifying across both financial and tangible assets for stability.
Pro Tip: Consult a certified financial planner or investment adviser to design a balanced strategy aligned with your goals, lifestyle, and tax profile.
The Benefits of Saving for Retirement
Beyond peace of mind, there are tangible advantages:
Tax savings – contributions to approved retirement funds are often tax-deductible (in Lesotho, up to 20% of taxable income; other countries may vary).
Flexibility – you can pause or adjust contributions based on your income cycle.
Financial security – consistent saving creates a financial cushion for your future.
Global portability – with fintech platforms, cross-border investment access is easier than ever.
Take Action Today
Your business is your passion — but your retirement is your legacy.
Whether you’re a designer in Nairobi, a consultant in Johannesburg, or a digital freelancer in Accra, your financial health depends on the decisions you make today.
Start by:
✔️ Assessing your financial position
✔️ Setting clear savings goals.
✔️ Automating your investments.
✔️ Seeking professional financial advice.
Remember: you are your own HR department, CFO, and future pension fund manager.
Final Thoughts
Entrepreneurship gives you freedom — but that freedom comes with responsibility. The good news? You have the power to shape your financial destiny. Start now, stay consistent, and let compound interest do the rest.
For personalised support and strategies, visit TKO Financial Wellness & Advisory for tailored financial coaching, retirement planning, and investment advice.
About the Author
Tokiso “TKay” Nthebe is an author, podcast host, and financial coach. As Lead Advisor at TKO Financial Wellness & Advisory, she helps working professionals, freelancers and business owners across Africa (and beyond) build financial confidence, design wealth-building strategies, and create legacies of financial freedom.
