In the last twelve years I’ve had two staff jobs, totalling three years out of twelve. The rest of the time has been contracting and freelance. One of the main advantages a staff position gives over contracting is that it comes along with a company pension. Here in the UK the company will contribute some, you will contribute some and the government will then add some into the pot. However if you are contracting you get nothing, no pension, no holidays, no sick pay, no bonuses. Out off all the benefits the staff pension is the most significant. You can always take holiday, you just won’t get paid for it, but unless you set up your own pension and pay into it yourself you are (and I am) exposing yourself (myself) to a lot of risk further down the lines.
What are the alternatives to pensions?
Don’t be deceived by the marketing, the marketing team isn’t going manage your fund.
Much like property the idea of investing in either of these is that they will grow over time,
however like property that growth is unpredictable and not guaranteed.